When any financial institution settles a portion of your debt, then they issue a 1099-C. This 1099-C reflects the amount that has been settled. The IRS will consider the amount mentioned in 1099-C as taxable. This tax can only be avoided if you can prove insolvency at the time of settlement. In order to do this you will have to follow a few steps.First you must compile all your 1099-C and get the total amount that has been settled...more
For a long time the best way of getting out of debt had been bankruptcy. However, people have learnt that bankruptcy is not the best option for those in financial trouble. This is not only because of the effect it has on one's credit rating but also due to the fact that there have been major changes in the bankruptcy laws. With these changes it is no longer easy for someone to qualify for bankruptcy. If you can choose a non...more
A debt settlement attorney is an expert in negotiating with creditors and financial institutions on various types of loans. They also give tax related advice to their clients who are trying to get out of debt. A lot of people have come under severe pressure due to the recent economic crash. Over duration of time debt has piled up and now repayment looks difficult.There are various debt relief options which help debtors come out of debt. These attorneys advice their clients on these relief methods and suggest the method which will suit them the best. These attorneys get in touch with the collection agencies to put a stop on the collection calls. They also work with their customers to improve their credit rating by removing any incorrect or unsubstantiated item from their credit report.When a debtor opts for debt settlement, he has to pay tax on the forgiven amount of money. Any settlement amount which is more than six hundred dollars is informed to the IRS direct by the creditor. A settlement amount less than six hundred dollars has to be informed by the debtor. The IRS treats this forgiven amount as income. A tax attorney can assess your financial condition and tell...more
People who have faced unemployment due to the recent economic recession find it hard to pay off their debts just like those who are facing financial difficulty due to other reasons. Debt settlement is the most common sought of relief that most debtors opt for. Here a debtor pays a portion of his debt while the remaining debt is...more
The recent trend shows that more and more people are opting for debt relief options in order to come out of their debts. People are becoming aware of the fact that paying only the minimum on your account does not help in bringing down the total balance. In order to come out of debt you have to constantly contribute more than the...more
Most debtors would agree to the fact that an improvement in life style will be possible if you could get rid of your debts. Getting out of debt is one the top five priorities of all Americans. There are many techniques that you can use to reduce your debt legally.1. Keep track of all your expense. It is important have a control on all expense when you want to reduce your debt. Make a list of all your expenses. Remove anything which is not absolutely essential. Once you stop buying things that you don't need with your card, you stop accruing more debt on it. If necessary cut up your credit cards. Use the saved money to pay off your creditors.2. Try to generate more money to pay off your debt. You can do this by taking up a part time job or by selling off items which you no longer use. People even monetise one their hobbies like painting etc.3. If you are paying high interest rate you can call your creditors and negotiate a reduced interest rate. Creditors offer such services to customers who have a god payment record. Even if you don't, there is no harm in trying.4. You can try consolidating your loans into one which will offer you a lower interest rate. This can...more
When the debt loads become overwhelming and even the monthly minimum payment becomes a challenge then debt settlement will be able to help you out. Collect all information about settlement of debt and get a clear idea about what you...more
A credit card debt is an unsecured debt which a debtor gets when he uses his credit card to pay for any purchase. This debt tends to accumulate and grow through interest and penalty charges which get added on to the account if the...more
People want to get rid of their credit card debts in order to ease out the financial stress. There are several debt reduction methods which can help you in achieving this goal. You can either use some debt reduction tool or get in...more
When you want to wipe out debt from your life, then the most important thing is to recognize the fact that there is a need to make some major financial changes. Debt of any kind and especially credit card debts can make your finances...more
The brand name of Surprise has a really interesting starting due to the fact it was based in London by a man referred to as Steve Sun and his wife. They realised that they could not usually purchase the kind of watch that they needed...more
This is a great question. In order to answer it, you must understand what mutual funds are and the pros and cons to owning them. Pros: * If you are not a savvy investor and don't have time or resources to give learning the ins and...more