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My settlement company update.

Date: Tue, 11/21/2006 - 07:08

Submitted by Linder Lou
on Tue, 11/21/2006 - 07:08

Posts: 87 Credits: [Donate]

Total Replies: 10


I am so thrilled. My settlement company is
settling my first debt for me. It is a 4600.00 debt
with Sears and they settled for 1700.00. That is less than 40% and that is what they promised they could do is settle my accts for less than 50%.

I am so happy. I have another acct with Sears for about the same amount and I am sure they will settle it for the same amount. I am almost through with paying a portin of my monthly payment to my company and then the full payment will go into my reserves.

I hope the rest of the accts come to fold quickly.

Just wanted to share my good news!!!!

Mishele, how is your company coming along for you?


Congradulations. Just think one day you will have all of this behind you and can move on to brighter things. KYSIDE38 :D :D :D


lrhall41

Submitted by KYSIDE38 on Tue, 11/21/2006 - 08:25

( Posts: 2477 | Credits: )


That is great news. Just be prepared. You will have to pay income tax on the $2900.00 that was forgiven.
Debts that are partially canceled or forgiven (other than in bankruptcy) must be reported as taxable income if the forgiven portion is greater than $600.
If you are insolvent, you owe more than the total amount of your assets, you may not have to report all or a portion of your forgiven debt, so you should contact your tax advisor before negotiating any settlement of your debts to understand the tax consequences.


lrhall41

Submitted by cbigfan7 on Tue, 11/21/2006 - 08:34

( Posts: 168 | Credits: )


I already checked into the tax situation. If you are insolvent at time of debt settlement and have no assets, then you fill out a form and send in verificaiton in with your income taxes and you don't have to pay a penny on the forgiven amount.

We have nothing to our name, therefore we will not have to pay anything on the forgiven amount. The settlement will not be complete until 1/2007, therefore I don't have to claim insolvent until 2007 tax return anyway!

thanks everyone for the congrats.


lrhall41

Submitted by on Tue, 11/21/2006 - 19:14

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