Old Credit card debt and Tax bills LOL

http://www.usatoday.com/money/perfi/tax ... 53357844/1

Now who was bragging on here about stiffing the credit card companies for $50K VL? And after 2012, losses in foreclosures/short sales are fair game too. Think twice before you walk out on debt. Good ol IRS is coming after you. Those compassionate Feds!

Debt that is canceled or forgiven is considered taxable income, something many borrowers don't realize until they receive a 1099-C tax form from their lender. The IRS projects that creditors will send taxpayers 6.4 million 1099-Cs in 2012, up from 3.9 million in 2010.

Joe wrote: www.usatoday.com/money/perfi/taxes/story...iven-debt/53357844/1

Now who was bragging on here about stiffing the credit card companies for $50K VL? After 2012 losses in foreclosures are fair game too. Think twice before you walk out on debt. Good ol IRS is coming after you. Those compassionate Feds!

Debt that is canceled or forgiven is considered taxable income, something many borrowers don't realize until they receive a 1099-C tax form from their lender. The IRS projects that creditors will send taxpayers 6.4 million 1099-Cs in 2012, up from 3.9 million in 2010.

You don't blame the banks for that legistlation? I did my daughters taxes last month and despite all her 1099's she got a refund..My advice to anyone with a lot of credit debt? Don't pay it, and if you can't write off income don't settle with them for any amount.. My brother had a down syndrome kid with his wife- he couldn't take it anymore a ran off with a flight attendant for a year, he ran up 95k in unsecured credit card debt and stiffed them when he took a pilots job with Emerates in the UAE and he told me "eventually the phone calls stopped".. Its an unsecured debt- They took a risk on my brother, and...They lost

BTW-Bankscannot even try to collect a debt over 6 years old..

WTF does it have anything to do with the Banks Einstein? Its the IRS collecting the money, the banks don't get any part of it???

Just trying to help you out. LOL And don't forget to report your gambling income, LOL

Joe wrote: What does it have anything to do with the Banks Einstein? Its the IRS collecting the money, the banks don't get any part of it???

Just trying to help you out. LOL

They bought the punitive legistlation- Makes it a little harder to skip out on debt, but not really...If you can't pay your credit cards its because you don't make a lot of money...or a spouse lost a job or something..So like my daughter- her refund was reduced a little...Much better than than taking 47 years of minimum payments @29%and 950k to pay off a 50k debt..Shes free!

Joe wrote: What does it have anything to do with the Banks Einstein? Its the IRS collecting the money, the banks don't get any part of it???

Just trying to help you out. LOL And don't forget to report your gambling income, LOL

Oh..I lost last year..And I got about 150k in losing tickets from various race tracks around the world to prove it..And you probably thought those guys picking up losing tickets were bums didn't you?

lol ...

Hey whatever works for you, I just thought it was an interesting tax law that people may be unaware of.

Taxing forgiven debt seems like a bad law to me, if businesses forgive it, why can't the IRS?

BTW a tax refund is (tax withheld - tax owed.) Doesn't necessarily mean you paid no tax.

Joe wrote: BTW a tax refund is (tax withheld - tax owed.) Doesn't necessarily mean you paid no tax.

Not really..There are all kinds of credits for kids working while going to college and for low income earners..

Joe wrote: Taxing forgiven debt seems like a bad law to me, if businesses forgive it, why can't the IRS.

Yeah, it's terrible.. And Obama certainly insn't going to change it...He's bought and paid for by the banks..

Hello McFly!

The funny part is that with all the talk of credit card debt and how it will catch up with us....do you know that the total of all US student debt far exceeds the total of CC debt?

What is even more interesting is the most of these kids with the debt were guilt tripped into it by their parents!

Uncle Sam doesn't forgive student loan defaults either, even in bankruptcy.