Re: taxes on debts

Posted by Linda on February 02, 2002 at 14:54:29:

In Reply to: Re: taxes on debts posted by tgirlot on February 02, 2002 at 14:16:13:

Okay, how many accounts? How old is each one( when did you default)? What state are you in? What state were you in when you got these accounts? Have they been turned over to collection agencies? Written off by original creditor? Do you have money to use to settle in a lump sum - you can't call the shots if you have to make payments.

When a balance is written off it is not forgiven, it is still owed. "Written off" means that the creditor has charged the money to profit and loss, and is no longer trying to collect it from you. At that point they well it to collection agencies, who will then try to collect it. You won't get a 1099 for this. You get a 1099 if you settle.

if Chase is offering to work with you, talk to them. They are a decent outfit.

Linda

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