I owe $10,000 in taxes from IRS from a $200,000 real estate property which I lost to foreclosure. On top of that I have $3,000 of cancelled debt from a credit card. As for my assets, I have no car, no house, no furniture, or anything significant else under my name, just my personal belongings and $1,000 in my checkings account and I'm staying with family until I'm settled.
So do I have to pay any taxes to the IRS? Can I file insolvency and be forgiven? How do I prove I'm insolvent?
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.