A thank you to all and our first settlement!
Date: Sat, 01/16/2010 - 14:41
Following the advice of many here and reading comments we cautiously moved forward with a law firm. We are now a little over seven months into our program and yesterday we accepted our very first settlement for one payment of just $3500.00. We are SO excited to see that happen! Our savings from just that one settlement equals our fees and what the monthly maint fee will amount to. If our other debts are settled for 50%, our net savings will be over $10,000 dollars. We hope they are settled for less but even so, we will have gone from overwhelmed to financially stable.
I believe that from what we learned here, what we're learning from the experience and from taking advantage of the how to properly handle your finances course the firm provided us -those things will make all the difference and we will prosper.
Thank you all.:D
Congratulations on your first settlement!! Anyway, don't forge
Congratulations on your first settlement!!
Anyway, don't forget the 1099c form. Once you settle the debt for less, it would be considered an your income and would be reported to the IRS.
They (the law firm) told us that. The told us so many bad thing
They (the law firm) told us that. The told us so many bad things that might happen we almost didn't sign up. We're glad we did now and, after thinking about it, we decided it was better to know all the possible downsides of this before we said yes. So far, so good.
Most people who are good candidates for debt settlement are not
Most people who are good candidates for debt settlement are not liable for taxes. The IRS gives an out for debtors who are ???insolvent??? at the time of debt settlement.
The term ???insolvent??? simply means that your debts exceed the value of your assets. If you are in a situation where a debt settlement is necessary, you are probably insolvent. Speak with a tax specialist regarding IRS form 982.
