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No. If it was forgiven, you are free of it. If you borrowed from a friend or family member and you now have the money, you should pay it back to be nice, but it isn't required. In the case of creditor debt, whenever it is "forgiven" or cancelled the debtor will receive a 1099-C. The IRS considers cancelled debt taxable income and the debtor must report it on the tax return. The good news is the debtor will no longer be subjected to collectors phone calls, the bad news is a forgiven debt of $5,000 can result in $1,700 taxes owed and the IRS one way or another always gets their money.
What else can I help you with?
Is a 1099 a considered debt forgiven?
If a debt is "forgiven," it is income to the debtor, and a 1099 is issued by the mortgagee or the creditor. You may not have to pay it, even if you don't file bankruptcy, if the debt was a mortgage on your residence.
Can you forget a debt a debt or have a debt forgiven and not have it hurt your credit?
When a debt is forgiven (a forgetadebt as you call it), it will be reported to the credit bureaus. But you will have less debt, which is a positive.
How long can a bank require you to pay on a delinquent loan?
Until it's paid off, or you declare bankruptcy and have the debt forgiven.
Can a collection agency collect on debts that 1099-C have been filed?
No. If the debtor has received notice that the debt has been cancelled (forgiven) they should receive a IRS form 1099-C as the amount of the forgiven debt is now considered taxable income. Given those circumstances, the debt no longer exists and is no longer collectible.
If your car is repossessed in Arizona can they collect any deficiency or is the debt forgiven when they take possession?
The debt is NOT forgiven. See link below. ArizonaRevisedStatutes
What is chapter 7?
Chapter 7 bankruptcy protects you from creditors and sells your non secured assets to pay the creditors that you owe. If you do not own an assets, you will not have to pay the creditors and the debt will be forgiven.
Did Mexico get anything in the treaty?
Only 'forgiven debt'.
Do you still owe a debt even if bank doesn't send you a cure letter or deficency letter?
Unless the debtor receives written notice that the debt has been "forgiven" by the creditor a debt remains valid and collectible even if the SOL has expired. Forgiven debts are subject to taxation and the debtor must submit a 1099-C claiming the amount of the debt as income.
What is the difference between IVA and bankruptcy?
IVA stands for Individual Voluntary Arrangement. It is an agreement that one reaches with their creditors. The person in debt agrees to pay a monthly amount for a period of usually five years. If payments are consistently received for the designated period of time, the rest of the debt is forgiven. Bankruptcy, on the other hand, is where one gets immunity from their creditors. One's assets (e.g. car, home, etc) are sold and the proceeds are used to pay back the creditors. If there is any outstanding debt in the end, that debt is forgiven.
How can you have a foreclosure deficit forgiven?
To have something forgiven it implies an agreement between the borrower and the lender. If there is money owed even after the property has been sold the borrower can use bankruptcy to clear personal debt. Consult with an attorney to understand the implications of any such action or to have an agreement to forgive the debt reviewed.
How can student debt be paid off?
"Student debt can be paid off in many ways. Once the student is out of school, they can pay off the entire debt at once or they can consolidate and start making payments. If they go into education, some of their loans will be forgiven if they work in ""at risk"" schools and school districts."
How could an IVA help someone in debt?
An IVA is an Individual Voluntary Arrangement. This is essentially an agreement between a borrower and a creditor to pay all or part of the debt owed. There is usually a cost involved, but the debtor can be helped by attaining lower interest rates or having part of the debt forgiven.
