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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?
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.
What else can I help you with?
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 do collections impact your credit score?
Collections can have a negative impact on your credit score. When a debt is sent to collections, it indicates that you have not paid it as agreed. This can lower your credit score and make it harder to get approved for loans or credit cards in the future. It's important to address collections promptly to minimize the impact on your credit.
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?
This answer depends on the procedures of the courts in your state. Generally, a judgment will be reported on your credit rating a will be a negative mark against. Instead, you can have a stipulation for settlement that keeps the case open and then the case is dismissed when the settlement has been fully paid.
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.
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!
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 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.
How do collections impact your credit score?
Collections can have a negative impact on your credit score. When a debt is sent to collections, it indicates that you have not paid it as agreed. This can lower your credit score and make it harder to get approved for loans or credit cards in the future. It's important to address collections promptly to minimize the impact on your credit.
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.
Can a credit card defaulter get house loan after the credit card debt settlement?
yes
How does a chargeback affect my credit score?
A chargeback can potentially hurt your credit score if the disputed transaction is not resolved in your favor. This is because the chargeback process can indicate to creditors that there may be issues with your financial responsibility. It's important to try to resolve chargebacks promptly to minimize any negative impact on your credit score.
