When hard economic times happen, debt settlement can seem like a very appealing option. Maybe you lost your job, your income was reduced or you had your income affected by a large medical expense.
For these reasons, you may have fallen behind on your bills and the creditors are now on your back!
You failed to pay your debts and now one of your creditors has lost hope getting you to pay up. For reasons known to them, they’ve decided to stop trying to collect their debt and may have decided to write off your debt.
While you may be feeling relieved, what seems to be a good fortune to you may turn out to be a tax nightmare!
Below, are some things you need to be aware of regarding settling or having large amounts of debt forgiven. If you’re not 100% sure on how this affects your financial situation you to need to seek out a finance professional for help!
Believe it or not, I was in a similar situation during the last great recession of 2008. If it was not for my CPA, I would have had some big tax problems and possibly owed over 100,000 dollars to … READ MORE