question on insolvency
Date: Tue, 12/14/2010 - 22:20
As far as I know, insolvency is figured on the basis of assets,
As far as I know, insolvency is figured on the basis of assets, resources, liabilities, due and payable debts.
Correct. Total assets vs total liabilities. Income is not fact
Correct. Total assets vs total liabilities. Income is not factor.
Insolvency is calculated for each forgiven debt, as of the date
Insolvency is calculated for each forgiven debt, as of the date forgiven. So it is entirely possible to be insolvent early in settlement and solvent later. I saved my mortgage for last because it kept me insolvent.
We were 1099'ed on three or four of the cards we settled on. I k
We were 1099'ed on three or four of the cards we settled on. I kept a running spreadsheet of what we still owed and we were insolvent on all of those. I filed the paperwork for the IRS right along with our taxes and we've not had a problem with it. I haven't received anymore and don't expect to at this point.
Income isn't figured in--just assets against liabilities.
well, looks like we can settle all our cc debt without a problem
well, looks like we can settle all our cc debt without a problem then....