Dave Ramsey - Paid in Full no 1099?

I was listening to Dave the other day, and have just gotten started trying to clear everything out. Did I understand him that if I settle with a cc and ask that they list it as "paid in full" that they won't issue a 1099? I am working with them right now (and am current on negotiated plans) so I don't even know if they'll settle, but I would like to if possible, my job isn't looking stable.

I want to avoid a tax hit, but would like to settle.

Mommytojkc

If you settle your debts for less, you need to pay taxes on the exempted amount if it exceeds $600 and you'd required to fill up the 1099C form. So even if they list it as "paid in full" you may be required to fill up 1099.

Most people who are good candidates for debt settlement are likely to be considered "insolvent" and this won't have to pay taxes on the forgiven debt. Read up on IRS form 982 and talk to a tax adviser to better explain.