Trusting CC Settlements
Date: Thu, 11/05/2009 - 12:00
Someone please help me understand these debt settlements. I do taxes for a living, and from what I've seen and know of the tax law, credit card debt forgiveness is INCOME, right? So you pay taxes on it..
With the debts being settled, are people able to negotiate something other than a 1099 coming at the end of the year?
Also, I've been dealing with credit card companies for years and typically the rep on the other side of the phone is blowing a lot of smoke that has no credibility. I was hoping that when it came to debt settlement, the correspondence was all in writing, that would make me feel better.
How do you know what you are getting? How do you know you are not being lied to? Obviously, people have done it, so I am just wondering.
My debt is so high, I do not want this reported as income. Also, I question the banks. I still think they are going to screw people over some how.
With the debts being settled, are people able to negotiate something other than a 1099 coming at the end of the year?
Also, I've been dealing with credit card companies for years and typically the rep on the other side of the phone is blowing a lot of smoke that has no credibility. I was hoping that when it came to debt settlement, the correspondence was all in writing, that would make me feel better.
How do you know what you are getting? How do you know you are not being lied to? Obviously, people have done it, so I am just wondering.
My debt is so high, I do not want this reported as income. Also, I question the banks. I still think they are going to screw people over some how.
As required by law, with any settlement over $600, a 1099 is req
As required by law, with any settlement over $600, a 1099 is required to be sent. There is no negotiation
You can verbally negotiate a settlement provided the settlement agreement is sent out in writing. We used to negotiate them all the time and fax out an agreement.
How do you prevent the short fall from being report to a collect
How do you prevent the short fall from being report to a collection agency anyway? well I guess the burden of proof is on the plaintiff to prove otherwise..
