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How to get out of debt I New FTC Laws I Does debt settlement work I Choosing a debt relief program I Debt Settlement or Debt Consolidation I Debt settlement and your credit I Can you settle your own debt I Understanding debt settlement fees I Debt settlement and your taxes I Can I be sued I Debt Help - Get Started today!
How does Debt Settlement affect my taxes
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A 10 part debt relief guide |
 Debt Settlement and its Effect on Taxes
Any money saved through the debt settlement process from the original amount you owed is treated as taxable income by the IRS (so you will owe money to the IRS). However, the amount of tax paid will still be much less than the amount of money you would have paid in interest, so it probably should not be a deciding factor when considering debt settlement help. And you don't pay the tax until after the settlement, at the time you prepare your income taxes after the new year. You should consult with a tax advisor for more information.
GET THE FACTS
OK, so now that you understand how consumer debt relief affects your taxes, let's move on to part 9 of our 10 part debt settlement guide.
Go to
Part 9 - Learn whether or not your can be sued or whether or not your wages can be garnished.
Also see
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