Just received settlement offer on CC 10/10
Date: Sat, 05/08/2010 - 13:35
I received a settlement offer on my final card yesterday. It is a regional bank mc with a $24k balance and an offer to settle of $9400. I probably will take it bc they may sue me in collections after chargeoff.
My tally to date is roughly $170,000 and I settled for around $50k so roughly 30% on average. I will have $120k in 1099 but now am technically insolvent so taxes should be no problem.
Still remaining: Home in foreclosure for many months but not foreclosed... My first should be wiped out. My HELOC of $96k is charged off and I will have to settle it next year when I have the $.
Coming up with the $ to pay settlements has sucked. But my monthly outflow used to be $10k and is now $1500 (aside from settlements). That will make for a good life when this is over. And also a good lesson learned.
thats great DTM! did you initiate the settlement talk with this
thats great DTM! did you initiate the settlement talk with this card too?
You are Dan the Man, that is great. So on your 1099, having that
You are Dan the Man, that is great. So on your 1099, having that much income isn't a problem? I am in that same situation and really freaking about it but would love to hear you take on it. If you add that much as income wouldn't that be a huge problem.
Please give me your take as well as detail of insolvencey sheet....
thanks,
Kaylee
Congrats, Your story gave me lots of insite into the entire pr
Congrats,
Your story gave me lots of insite into the entire process of debt settlement.
Keep us informed about the last details, those pesky little 1099c's.
Please share/start a thread when they start arriving.
We'll be there soon enough.
Respectfully yours,
King "Kash" Jabba Labba
Hey fantastic dantheman!! You've done a great job and don't wor
Hey fantastic dantheman!! You've done a great job and don't worry abou the 1099s you were most likely insolvent at the time of the settlements so you won't have to pay taxes on them anyway.
good luck with the house. Keep us updated.
Thanks everybody. You all are the greatest and it was with the
Thanks everybody. You all are the greatest and it was with the help of you that I was empowered to get this done.
As far as the 1099's and kaylees question about the additional income, there is a big difference in the eyes of the irs between income and solvency. I am uncomfortably underwater on my mortgage, so if everything else was at zero, I would still be about $200k insolvent (on paper). Therefore, all of the 1099 income qualifies as exempt from taxes due to insolvency at the time of settlement. However, if my home had foreclosed first and the debt forgiven, each one of these cc settlements would have been taxable. Timing is the key.
Quote:Originally Posted by blackbeasstthats great DTM! did you i
Quote:
Originally Posted by blackbeasst thats great DTM! did you initiate the settlement talk with this card too? |
Yes, being a regional smaller bank they never once offered settlement. I had to write a letter to the vp to be considered.