Let’s say you’ve just been served with a debt collection lawsuit. The company suing you is a debt buyer, a company who claims it purchased the right to enforce a debt you ran up on a credit card or other credit account. You’re being sued for about $7500. But you’ve read on the Internet or …
Taxman Cometh, Even in Debt Resolution
The old adage about the certainty of taxation is also true in debt relief. When a creditor cancels a debt, the Internal Revenue Service considers that to be taxable income. It’s also called “debt forgiveness income.” As discussed in a previous post on Debt Settlement, if you agree to settle a debt as opposed to …