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If you make a settlement with a creditor and the deficiency between the total amount and the settlement is 4000 can you legally avoid paying taxes on the forgiven amount?
Wiki User
∙ 17y ago
Relief of debt is a form of income, they have given you $4,000 to do anything you want (usually past tense) with. As such, the IRS is going to want their share of your good fortune. Not much you can do about that. Consult with a tax consultant for ways to ease the burden.
Wiki User
∙ 17y ago
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When judgment entered against debtor is creditor held to any oral settlement agreement to pay off debt made between debtor and creditor?
Not unless it is in writing unfortunatly.
How do you settle debt with credit card?
Debt CAN be settled with credit card debt and other unsecured debts. Negotiating a settlement is between you and your creditor and settlements have happened for millions of people and helped them get out of debt.
what is a credit card settlement?
Credit card settlement describes a negotiated arrangement to settle a debt for less than the entire amount owing between a credit card holder (debtor) and the credit card issuer (creditor). It often entails the debtor paying the creditor a flat sum that is less than the entire outstanding balance. In exchange, the creditor considers the debt to be paid in full, and the debtor is released from paying the outstanding balance. When a debtor experiences financial difficulty, struggles to make the minimum payments, or faces defaulting on the debt, credit card settlement is frequently pursued. Although it may have an impact on the debtor's credit score and financial history, it can help with heavy debt loads. It's crucial to remember that credit card settlement is a difficult process that needs to be handled carefully. Debtors frequently engage in direct negotiations with creditors or deal with third-party debt settlement firms. Creditors are not required to accept settlement offers, and the procedure may have an adverse effect on credit reports and have tax repercussions if the forgiven debt is regarded as taxable income. Debtors should look into options such as debt consolidation, credit counseling, or negotiating more favorable repayment terms with the creditor before pursuing credit card settlement. To make wise choices about debt management, it is also advisable to get professional financial counsel.
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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.
What is the difference between a creditor and a lender?
They are spelled differently.
What is the Elizabethan settlement?
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If you hide your car from repo are you breaking the law Florida?
More than likely you will not be prosecuted for hiding the car. But is this really what you want to do? Do you want to own a vehicle that can be repossessed at any time day or night at any location? Do you want the creditor calling you and trying to recover their property that you are hiding? You signed a contract to pay this loan off. You have defaulted on the contract so do what is right and save some money in the process. Voluntarily return the vehicle to the creditor which will reduce your creditor's expenses in retaking the car, and you will reduce the amount you will owe the creditor. But remember, you will still be responsible for paying any deficiency on your loan, and your creditor may still enter the repossession on your credit report. Sooner or later they will get the vehicle, and the longer it takes them the more it will cost you. They will seek a judgment against you. The judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle. A creditor who has followed the proper procedures for repossession and sale is generally allowed to sue you for a deficiency judgment to collect the loan balance. You should have talked to the creditor before any of this happened and tried to work out a new payment plan. But you did not do that, and now you are making it worse by hiding the car. Think about it.
What is a stipulation in bankruptcy?
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