Do the debt collectors report the written off debt to the IRS?
We owe $30,000 on a Chase Visa card. The debt collector told us that if we settled for $10,000, they report the $20,000 that they had to write off to the IRS as our income, and we would have to pay taxes on this amount. Is this right?
Comments for Do the debt collectors report the written off debt to the IRS?
Learn how debt collection laws can help you! This website does not provide legal advice. All information is for educational purposes only. Copyright 2007 - 2017 by Mary Reed and Gerri Detweiler. All rights reserved.
Disclosure: We may receive compensation for marketing some of the services mentioned on this site. Above all though, our goal is to recommend products and services we believe can help our readers. You can learn more here.