http://www.zipdebt.com/blog/debt-settlement-success1 Straight Talk by Charles Phelan on Debt Settlement & Other Debt Reduction Strategies Mon, 12 May 2008 12:28:48 +0000 http://wordpress.org/?v=2.5 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15158 Charles Wed, 26 Dec 2007 22:11:38 +0000 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15158 Joe, when a creditor forgives a debt balance of $600 or more, they are required to send you a form 1099-C, and you are supposed to treat that canceled debt amount as ordinary income on your tax return for that year. Debt collectors and critics of debt settlement love to harp on this tax issue. They bring it up over and over again to persuade people not to settle. However, what they neglect to tell people is that the IRS provides a legitimate loophole that most debt settlement clients can take advantage of. Briefly, if you're upside down financially, meaning you have a negative net worth, then you are 'insolvent' and you don't need to pay taxes on the forgiven part of the debt. Joe, when a creditor forgives a debt balance of $600 or more, they are
required to send you a form 1099-C, and you are supposed to treat
that canceled debt amount as ordinary income on your tax return for
that year. Debt collectors and critics of debt settlement love to
harp on this tax issue. They bring it up over and over again to persuade
people not to settle. However, what they neglect to tell people is that
the IRS provides a legitimate loophole that most debt settlement clients
can take advantage of. Briefly, if you’re upside down financially,
meaning you have a negative net worth, then you are ‘insolvent’ and
you don’t need to pay taxes on the forgiven part of the debt.

]]> http://www.zipdebt.com/blog/debt-settlement-success1#comment-15156 joe Mon, 24 Dec 2007 02:53:22 +0000 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15156 How about the tax consequences though of debt forgiveness? How about the tax consequences though of debt forgiveness?

]]> http://www.zipdebt.com/blog/debt-settlement-success1#comment-15123 Bill Taylor Fri, 23 Nov 2007 10:20:31 +0000 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15123 This is a good indication that after that long disarray of debts, you will find relief. Good Article. This is a good indication that after that long disarray of debts, you will find relief. Good Article.

]]> http://www.zipdebt.com/blog/debt-settlement-success1#comment-15095 Charles Mon, 22 Oct 2007 18:31:41 +0000 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15095 In response to Tammy's question, bank accounts and investment accounts are not ordinarily reported on your credit report, so typically a creditor has no access to investment account information. Normally, a creditor would have to file a lawsuit and obtain a judgment in order to gain access to this type of information. Obviously, you should never allow matters to escalate to that level! In response to Tammy’s question, bank accounts and investment accounts
are not ordinarily reported on your credit report, so typically a creditor
has no access to investment account information. Normally, a creditor
would have to file a lawsuit and obtain a judgment in order to gain
access to this type of information. Obviously, you should never allow
matters to escalate to that level!

]]> http://www.zipdebt.com/blog/debt-settlement-success1#comment-15092 tammy Fri, 19 Oct 2007 19:00:43 +0000 http://www.zipdebt.com/blog/debt-settlement-success1#comment-15092 this was very informative and their starting situation mirrors our own. Our main concern is our prior investments. Can they be affected or accessed by creditors during this process? are our investment information accessible through credit reports, etc? this was very informative and their starting situation mirrors our own. Our main concern is our prior
investments. Can they be affected or accessed by creditors during this process? are our investment information
accessible through credit reports, etc?

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