Taxes on Debt Settlement

uncle sam hand out

The concept, although quite simple, can actually be very confusing for consumers, especially because of false information offered by some debt relief sales people. The bottom line: Unless exempted by the insolvency rules or another exemption, you will owe taxes on debt that has been forgiven by a creditor. In this article I assume that none of the exemptions apply. Some of my clients have expressed an attitude of distaste that after finally getting out from under a crushing debt […] Read more »