A large number of debt settlement clients file this form so that they don't have to pay taxes on the savings. (goldenfs.org)
This is because the payoff of the credit card balances results in both a lower credit utilization ratio, and a smaller number of debts with open account balances. (goodfinancialcents.com)
This is especially helpful if you are having a hard time managing a large number of debt obligations. (goldenfs.org)