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If you have paid a lump-sum settlement to a credit card how do you minimize the taxes due and negative credit report?
Wiki User
∙ 8y ago
There is no way to "minimize' anything that is placed on a credit report. The only option you have is to make certain the report is accurate and timely. The fact that you paid something (I am assuming not the entire amount). Doesn't make much of an impact on your credit score.
I agree with Nikki, I don't think there's any way to minimize anything.
Your credit score is going to reflect the settlement, and the IRS is going to tax you on the forgiven debt (since the IRS considers forgiven debt to be income).
Maybe your accountant can help you find ways to offset the tax liability with other write-off's, such as writing off the cost of settlement, etc.
Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Wiki User
∙ 8y ago
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Is the word settlement as bad as bankruptcy in your credit record?
The word settlement is considered negative on your credit report. With a settlement, you are settling for less then the total amount due. Like bankruptcy, settlements will remain on your credit report for several years.
How does working with a credit card settlement company affect your credit score?
It is recommended that you pay an old debt through the original creditor. Credit settlement companies are out to make a profit and they will negotiate terms that are not true. Also, it is possible that you can pay the settlement company but still owe the original creditor. It has happened to me. The negative information reported by the credit card settlement company will affect your score negatively.
Can I get an out-of-court settlement on my credit card?
It is possible to get an out-of-court settlement for a credit card. Credit card companies and collection agencies offer a variety of payment and settlement options for the debtor.
Will a credit counseler help you get a debt settlement on your credit card?
A credit counselor may be able to help you get a debt settlement on your credit card. It will depend on if the counselor only gives you ways to get out of debt or if they are a settlement counselor.
How can one get a credit card settlement?
For one to get a credit card settlement, you would need to be far enough late in your payments for your credit card to consider settlement. If you are late, you would call and make an offer.
Is the word settlement as bad as bankruptcy in your credit record?
The word settlement is considered negative on your credit report. With a settlement, you are settling for less then the total amount due. Like bankruptcy, settlements will remain on your credit report for several years.
How does working with a credit card settlement company affect your credit score?
It is recommended that you pay an old debt through the original creditor. Credit settlement companies are out to make a profit and they will negotiate terms that are not true. Also, it is possible that you can pay the settlement company but still owe the original creditor. It has happened to me. The negative information reported by the credit card settlement company will affect your score negatively.
Is there a different affect on your credit if there is a consent judgment or a settlement order entered?
Both a consent judgment and a settlement order involve agreements to resolve a debt, but they may impact your credit differently. A consent judgment typically shows up as a court-ordered action on your credit report and may have a more negative impact. A settlement order may also affect your credit, but the impact could be less severe depending on how it is reported by the creditor.
How do you minimize the credit risk?
To minimize the risk of extending credit, carefully review the applicant's credit history. Look at how he has handled previous bills and how much income he has.
Does a settlement loan make an negative mark on your credit history?
Everything that takes money from your avilable credit hurts your credit score. The system that makes the score has many flaws and doesn't take life into account. Sorry!
Can I get an out-of-court settlement on my credit card?
It is possible to get an out-of-court settlement for a credit card. Credit card companies and collection agencies offer a variety of payment and settlement options for the debtor.
Will a credit counseler help you get a debt settlement on your credit card?
A credit counselor may be able to help you get a debt settlement on your credit card. It will depend on if the counselor only gives you ways to get out of debt or if they are a settlement counselor.
How can one get a credit card settlement?
For one to get a credit card settlement, you would need to be far enough late in your payments for your credit card to consider settlement. If you are late, you would call and make an offer.
Is settlement good or bad on credit report?
Debt settlement is good for your credit rating. Just settle the debt and move on. Do not use a debt settlement company, ever.
Do the credit rating agencies look at a mortgage settlement in a negative way will they look at it like a foreclosure and how long will this be on your credit report?
If the home was a short sale, many investors will view that like a foreclosure. Please proved more details on the type of transaction this was.
What are the specifics of credit card debt settlement?
You should get a hold of a debt consolidator who will then go to bat for you with your credit card companies. They will work out a settlement that can be agreed upon by both the credit card company and yourself.
Can a credit card defaulter get house loan after the credit card debt settlement?
yes
