Debt settlement & Taxes

Date: Sun, 10/30/2011 - 09:21

Submitted by Katzfenster
on Sun, 10/30/2011 - 09:21

Posts: Credits: [Donate]

Total Replies: 2

I have a question. We are working with Superior Debt Services to consolidate and settle some debt and I was curious to here of others' experiences with this company and if/how it affected your taxes. I've read somewhere that in some cases you have to claim the amount they write off as income. We are facing major changes in Jan., I cannot afford any surprises! Any feedback anyone has on Superior Debt Services in general are appreciated. Thank you!

It is true that the amount of debt that is forgiven by your cred

It is true that the amount of debt that is forgiven by your creditor or debt collector will be considered as your income and you will be liable for paying taxes on that forgiven amount. You can't avoid the tax payments. You can check out the given page in order to know more about Superior Debt Services: http://www.debtconsolidationcare.com/forums/superior-debt-services.html .

lrhall41

Submitted by Anna Sweeting on Sun, 10/30/2011 - 20:30

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IRS considers the forgiven debt as your taxable income. So, afte

IRS considers the forgiven debt as your taxable income. So, after settling your debt, you are most likely to get a 1099C form from your creditor. You can avoid paying the tax if you can prove that you are insolvent.

Check out the feedback of the forum members on Superior Debt Services from this page:

http://www.debtconsolidationcare.com/settlement/superior-debtservices.html

lrhall41

Submitted by nandydiana on Sun, 10/30/2011 - 21:24

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