Credit card debt relief in Illinois
Q: I am going back to school and moving in with my parents. I am also selling my condo in downtown Chicago to pay off credit card debt and live on. I owe around $25,000 to various credit card issuers and to my relief, settled for $11,000 altogether. So the question is, if a credit card issuer finds out that I have money after the sale, can it come after the full amount that I owe? I am worried about Amalgamated Bank of Chicago since it is the one that also holds the mortgage.
A: As long as you have everything in writing, all credit card debt relief agreements with every credit card issuer / bank, you should be fine. The thing to remember is that you will more than likely get the IRS hit because the Internal Revenue Code treats forgiveness of debt as taxable income. You may have to pay tax on $14,000 amount that is being forgiven. You will get 1099 C form, Cancellation of Debt from every credit card that forgives a debt of $600 or more. Such a relief.
Tue Jul 27, 2010 11:07PM | Copyright: www.bad-credit-advisor.com | More in Credit Card Debt | Comments (0)
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