According to Steven J. Weil, president of RMS Accounting in Fort Lauderdale, Florida, debt can be
forgiven on credit card balances, mortgages, auto loans, or nearly any other type of loan.
Although the
credit card company in these examples would be losing money
on the overall deal, they might be willing to
forgive the
balance of the debt because they don't believe that you will pay off the total or they may need a positive cash flow.