Posted on
September 8, 2009
at
6:01 am
i heard that debt settlement is taxable? bankruptcy is not..so why would i do debt settlement?
Posted on
September 8, 2009
at
6:05 am
It's true, debt settlement or debt forgiveness is taxable - why debt settlement?-it's because you would still save a lot from it. I don't exactly know how much the IRS take from the settled amount but it's not big..
Posted on
September 8, 2009
at
6:12 am
Why debt settlement -If for example you owe $10,000 and settled for $5,000 - you have saved $5,000. The IRS might take $1,000 for tax and that leaves you with $4,000. That's not an exact figure, perhaps somebody can correct this..
Posted on
September 8, 2009
at
6:13 am
okay..and how much would debt settlement cost?
Posted on
September 8, 2009
at
6:21 am
Debt settlement companies charge 15% of the total debt amount and they spread that out over 18 months. Or, they will take a percentage of the settlement amount, and it's usually between 20-25%.
Posted on
September 8, 2009
at
6:26 am
If you're already asking why debt settlement, it means that your accounts are already past due- correct?Why debt settlement? When collection agencies or junk debt buyers purchased your account from the creditor - it means that they purchased it for far less than its original amount - and that means that there's a big chance that your debt might be cut down to half of its original price or more. Some really good debt settlement companies can settle it for 70%
