Re: Charge off

Posted by Taziblue (68.130.206.10) on January 02, 2004 at 15:08:12:

In Reply to: Charge off posted by Timmy on January 02, 2004 at 15:03:58:

Others will advise you on paying off a charged off account. As I understand it, paying it off does absolutely nothing to help your credit score.

You will only be responsible for taxes on the chargeoff if you receive a 1099C from the original creditor. That means the debt is forgiven. The IRS considers that to be income to you.

However, if you are insolvent during the year you receive the 1099C, you may not have to pay taxes on that money, although you must file forms with the irs to claim that status.

Until you get a 1099C, do nothing.

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