Re: Credit Card Settlements

Posted by JJ on November 03, 2001 at 20:37:56:

In Reply to: Credit Card Settlements posted by Pete on November 03, 2001 at 19:13:57:

First of all, a big ding on your credit report. Secondly, the cc company will issue you a 1099C for the difference between what you owe and the settlement amount. The IRS considers this as taxable income. The only way out of paying taxes is to prove you were insolvent on the date the settlement was reached.

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