macy Rep Points:
500
Posted on
November 6, 2007
at
2:30 pm
Are there requirements to be eligible to apply for a debt settlement? What were usually the amount ranges from?
Posted on
November 6, 2007
at
2:30 pm
I know a lot of those debt settlement companies require you to be $10,000 or more in debt. I'm assuming that's because it's not lucrative for them to get involved for any less than that amount. They are like credit repair services...they don't do anything for you that you can't so for yourself.
Posted on
November 6, 2007
at
2:30 pm
I don't think there are any requirements. I believe these settlement services are mere consultations. Although you may also ask them to handle your debts for you, you'll probably need to pay them something for it.
Posted on
November 6, 2007
at
2:30 pm
I called my credit card companies and made debt settlement arrangements myself. I took debt forgiveness from three companies, but really didn't understand the effect it would have on my income taxes. If a company forgives $5000 in debt, they must report it to the IRS as income to you. You then owe taxes on it. That didn't seem bad to me, but I forgot that this would put my income into the next tax bracket, so I paid a much higher percentage to the government than I thought I would. In retrospect, I shouldn't have done it. I should have raided my retirement account.
Posted on
April 1, 2008
at
4:30 pm
Be smart about your settlements. Make sure you get it in writing. Most collectors will try to beat a payment of anything out of you. They're trying to reset the statute of limitations and drag out the time they have to collect. Settlement can be done on your own, but if you choose a reputable company, you'll have their experience and knowledge of situations on your side.
Posted on
December 12, 2008
at
6:41 pm
If you are going through a true hardship when you enroll into a settlement company or if you make settlements yourself, you can file a Form called a 982 to offset the 1099 that collectors sends. What a 982 states is that your were insolvent when paying back the debt to your debtor. A 1099 that a creditor sends to you is for there records so they can get a take break for settling a debtors debts.
Posted on
December 13, 2008
at
3:07 pm
The form 982 can be downloaded at:
http://www.irs.gov/pub/irs-pdf/f982.pdf Please note it is in pdf format so you'll need adobe reader. Go to
www.adobe.com and get it if you don't already have it. I didn't read the instructions that come with the form but I believe it is applicable to only real estate transactions that are resolved through debt settlement. If you download it, read all of the instructions as the IRS is usually very specific as to the circumstances and/or person the form is applicable.
Posted on
March 29, 2009
at
8:43 pm
Thanks to the person who mentioned that debt forgiveness is counted as income. I had no idea! Thanks for that information. I'll keep that in mind before requesting any such deal from my credit card companies.
Posted on
March 30, 2009
at
4:45 am
i have no idea, ive never done one of those before. i think it is something like if your monthly payment is over, i really have no idea
Posted on
March 30, 2009
at
6:37 pm
There are many companys that do settlement. They all have there own requirements. The best thing to do is talk to the all and find the best one for you. I they dont build your payments and debt amount around you, then you should look for someone that will. Cause you will just stay in debt if you dont do it right and leason to your consultant. They are the pros not you. They will work around your needs.. Check this company out
www.lonestardebtconsulting.com
