Is there any tax implications associated with enrolling in a credit card debt settlement program?
We are credit counselors, not tax advisors so we recommend you contact a tax professional for advice. Settlement of your debt for less than the full amount owed may have tax consequences. Indebtedness of $600 or more that is discharged as a result of a settlement may be reported by the creditors to the IRS as taxable income to you pursuant to IRS Code 605(p) and related federal law, although you may qualify for exemptions to the extent that you have negative net worth. (See IRS Form 982 at www.irs.gov). You should consult your own tax and/or legal advisor about these issues. 23. What are my responsibilities throughout the credit card debt settlement program? Continue to make timely payments and contact us with any creditor communication. 24. Can I include accounts into the debt settlement program that have authorized users or coapplicants? Yes, with the co-applicants consent. 25. What is the difference between credit card debt settlement and credit repair? SEE QUESTION #1 26. Do you ma
