Sentences with phrase «forgiven by the creditor»

Any amount of debt forgiven by a creditor is generally considered to be income for tax purposes, so you will have to pay taxes on the amount forgiven when you file your federal income tax return in the year the debt forgiveness occurs.

Not all debt that is forgiven by creditors is necessarily taxable.

Once the terms and amount are agreed upon in writing, the debtor pays the creditor, and the unpaid portion is forgiven by the creditor.

Also keep in mind, if you do settle the debt the amount of debt forgiven by the creditor will be reported as a bad debt.

Not exact matches

Credit counselors are firms that negotiate monthly payment plans with creditors by lowering interest rates or forgiving late fees so debtors can repay the full amount.

If you can't pay back the debt in its entirety, you might be able to negotiate your debt by paying back a smaller amount in exchange for the creditor forgiving what remains.

By initiating contact with a creditor who has already forgiven an old debt, you may be required to activate an old account.

When you're approved for bankruptcy status by a federal bankruptcy court, some or all of your debts will be forgiven, and creditors and collections agencies are no longer permitted to pursue you for those debts under law.