First off, thanks to all for the tips and advice I have gotten off of this forum.
Tax time is here and we had about 15000 worth of forgiven debt this year by 2 of our creditors. They have advised me that I will be getting a 1099 from them. My question is, do I enter these amounts on my return? Or, based on the fact that I was insolvent by about 70000 do I just leave them off. Also, in figuring insolvency, what do you include as assets? Is it your house, cars etc. or is it everything you own, like your tv and furniture and bed? Thanks alot.
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.