Re: Taxes vs. Settlements-Confused- please help

Posted by Why Chat (209.240.222.130) on April 14, 2002 at 13:35:03:

In Reply to: Taxes vs. Settlements-Confused- please help posted by Brandon on April 14, 2002 at 00:50:00:

You are not sent a 1099 for accounts you don't pay. A "write-off" or "charge-off" is an accounting system for the creditor. As long as you still OWE the money, you can't be TAXED on what you don't pay. It is only when you SETTLE for less than what you owe that you are taxed on the difference. (which is why settling with collectors is not always a good idea)

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