Settling a debt, does the IRS tax you on the total amount settled or individually?

Question by Johnny: Settling a debt, does the IRS tax you on the total amount settled or individually?
Does the IRS charge tax on each settlement over 600 but not on anything under 600 or on a cumulative amount of all the debt you settle in a year?

Best answer:

Answer by Wayne Z
Cumulative total of all debt settled (subject to insolvency limits).

The $ 600 is the minimum for the debt holder to send the 1099C.

It has nothing to do with how much is taxable on your return.

For example, if 2 creditors wrote off $ 400 and $ 700 respectively, you would only receive a 1099 for $ 700 but, assuming that you were not insolvent, you would have $ 1100 in taxable income.

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In about 30k of debt. Need help/advice?

Question by Leroy: In about 30k of debt. Need help/advice?
In about 30k of debt. Declined for a personal unsecured loan. Credit is Fair (only due to credit to debt ratio). All bills paid on time otherwise. Bankruptcy is not an option and I am not calling to settle or close any accounts because I want to maintain a decent credit rating going forward once this balance is paid off.

Best answer:

Answer by scott8688
The key is to get credit counseling. Scratch that: legitimate credit counseling.

Look into debt consolidation, it will help you lower your balances and pay off your debt in a couple of years..

Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.

Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. A prudent debtor can shop around for consolidators who will pass along some of the savings. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.

Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest

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I owe over 100k in Credit card debt…advice?

Question by : I owe over 100k in Credit card debt…advice?
I have numerous businesses, and numerous credit cards. I had impeccable credit until about 3 months ago, when the brown stuff hit the fan, and a lot of debt caught up with me. I feel totally responsible for the debt, but I thought it was more important to pay the medical bills for my twins that were born 3 months early (they each have over 1.5M in medical bills…but I do have some insurance), than to pay my monthly minimums. The majority of my businesses are now costing me money monthly, and I can barely cover the bills. I have managed to keep all my mtg payments on time (I do have rentals, but not much equity..if any..in all of them) but I have missed the past 3 months payments on 8 or 9 credit cards, with balances totaling 130k or so. I get calls all day long, but decided to not answer any of them. I have spoken with not even one of the creditors in 3 months, and only a few leave msgs. I owe all our vehicles outright, and we are trying to sell one now…to pay off some bills…so there is no repo issues yet. I really hope to get some things I have in the works going, and hope to make deals with all of them to pay them in full….but who knows when or if that will happen. I am not real comfortable with BK, as I feel I am responsible for the debt I have taken on. To be taken to court do I need to be notified officially, or just regular mail? Can I be sent to jail for debt? Not sure what to do…..do I call the creditors and let them know I will pay soon? Do I let it ride for now? Is it better to deal with the creditors, or wait till they sell the debt to a collection company….. Any advice is appreciated.

Best answer:

Answer by Road to The Riches
sell your businesses and cover back bills
one famous qoute for you
dont spend money unless you have the physical form in your hands

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Collection Agency?

Question by Bob-Woo!: Collection Agency?
How should I deal with a collection agency when i have a credit card loan?

Best answer:

Answer by lorijotx
Make arrangements with them to pay your debt. If you try to avoid them, they will take you to court and you will be served with a summons – and not necessarily at home.

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i have $380,000 in debt and need some advice.?

Question by netgear510: i have 0,000 in debt and need some advice.?
i owe $ 341,000 to country wide for my two homes.
i owe $ 20,000 to wells fargo to pay off my car.
and i owe bank of america $ 10,000.
i need to find a company to bundlle up all these debts to one payment every month, is this possible??

Best answer:

Answer by ibu guru
NO. You do not want both homes on the same mortgage, even if it were possible. And a mortgage is the about the cheapest type of loan, so you would not want to take out a large high-interest loan to pay off cheaper mortgages. You also have to calculate the costs of taking out new mortgages and loans. Bad deal to re-fi now.

You are better off writing the four checks per month to pay off your 4 existing obligations or setting up automatic payments. If you don’t have enough income to pay these four debts (I assume you are renting out one of the houses as an income property), you will have to sell something to pay off some of the debt. Or rent out the second house as well and move into a cheap apartment until you sort out your finances.

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How do you settle debt with credit card companies?

Question by tim: How do you settle debt with credit card companies?
I’ve got some debt that’s currently in collections. And I got to talking to one of the debt collectors and he revealed that the average company is willing to settle for about 75% of the debt owed.
But since they’re basically screwing you with outragous interest that never allows you to really pay off the principal debt, are they willing to settle for even less.
What are some useful tricks when dealing with these parasites?

Best answer:

Answer by mcgregorjt
Educate yourself before you call back the collector. They purchase debts for pennies on the dollar. If charge off was 1000, they could have purchased it for 150.00 and now come after your for the full 1000 plus fees. A charge off at a bank is a lost of profits, this is in the end is great for the bank for it effects amount of business taxes paid. It is a hassle though. Educate yourself. Follow the link below. And do not let them threaten of lawsuit. Court fees cost more than debt, even if they paid pennies on the dollar.

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is obama settling his debt with china by giving them lands?

Question by Kokomo: is obama settling his debt with china by giving them lands?

Best answer:

Answer by Tattoo Mamma
No! but I’m sure Rush Limburger wants you to think so.

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Is there a way to make a collection agency stop calling me?

Question by TinMan: Is there a way to make a collection agency stop calling me?
I had a financial crisis a couple years ago when I lost my job, but am working now. I had a couple debts go into collections and they are calling me 10 times a day, and flooding my mailbox with collection letters every day.

Best answer:

Answer by InfoDoc
You can stop a debt collector from contacting you by writing a letter to the collector called a “Collection Agency Cease and Desist Letter”. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. The debt will likely be sent back to the original creditor and/or re-sold to another collection agency, at which point you send a new Cease and Desist letter to the new collector.

There is also a statute of limitations on debt collections, which varies from state to state. There is a listing of all state statutes and a sample Cease and Desist letter on the following website:

http://stopcollections.blogspot.com

___________________

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Bankruptcy is it really bad?

Question by Photographer: Bankruptcy is it really bad?
So I talked to a friend about bankruptcy, I have some debt and I thought bankruptcy would be a good idea. But she said that if it was an open case then I would be denied for loans, is that true? And also can i still apply for credit cards to make my credit a little better?

Best answer:

Answer by Visualize Whirled Peas
It’s a bad idea. Stop talking to broke people.

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Is signing up for Dave Ramsey’s Web site worth it?

Question by suz’: Is signing up for Dave Ramsey’s Web site worth it?
I have read the Total Money Makeover and have begun following the plan. However, I find myself wondering if signing up for the services on his Web site are worth it. Is it all covered in the book, is the online program of any help, do the budgeting tools and other services really work or am I better of just sticking to the book? Thanks in advance!

Best answer:

Answer by Wes Martin
No! That site’s system is not exactly proven to work. Try this site: http://cuturl.com?782159 it can make you good money and it is easy to do. There are no fees and it pays out every Friday. It is also listed in the top 10 on the work at home watchdog website: http://www.wahwatchdog.org/ .

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