What happens if you receive a 1099c form,file it on your taxes as income,but then a year or two later you pay off said debt?? Are you able to claim it as a deduction some how on your current year tax return? ie: defaulted on a $5000.00 credit card,issuing bank filed a 1099c form and you claimed it as income but then a year later paid the debt in full.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.