Posts Tagged ‘taxable income’

Do you need to pay tax on credit card debt negotiated down?

We are trying to negociate 50,000 credit card down to 25,000. Is it true that you need to pay taxes on the amount settled to the IRS. See post below:

"Do you have the settlement amount in full? When you try to negotiate settlements, often times you need to have enough
funds to make large payments. Additionally, be aware that any "forgiven" debt by the OC is considered taxable income by the IRS"

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Posted February 5th, 2011 in Debt Settlement. Tagged: , , .

Is debt settled after dismissing Chapter 13 bankruptcy case, income tax exempt?

I filed a Chapter 13 bankruptcy, then dismissed it when I was not able to get a helpful deal from the creditors. I was able to get enough money together to settle with them after the case was dismissed. I have received the tax forms from them claiming that the debt might be considered income. Since this was debt settled after the case was dismissed, is it consider taxable income?

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Posted November 1st, 2009 in Debt Settlement. Tagged: , , , , .

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