Welcome Guest. Sign in or Signup 

2 Answers

How does debt settlement work?

Asked by: 881 views

I don’t know much about debt settlement. I do know it affects credit scores. But can your credit score be restored after doing so. And if you are settling an account, you are paying it off and closing it right?

2 Answers



  • +1 Votes Thumb up 1 Thumb down 0

    Pinyo on May 29, 2010

    I don’t have anything to add to GetOutOfDebtGuy, but there is also a good introduction to debt settlement on Bargaineering.



  • +1 Votes Thumb up 1 Thumb down 0

    getoutofdebtguy on May 29, 2010

    Debt settlement is best used if you have the cash on hand to offer lump-sum settlement payments. The amount of debt forgiven will be reported to the IRS as income and you will have to pay tax on the forgiven debt. It will result in a bad credit notation on your credit report for seven years. 

    For more debt settlement you may want to visit the Debt Settlement articles I have previously written.

    Steve

    @GetOutOfDebtGuy


Answer Question

Please Sign in or Sign up to leave an answer

Copyright © 2007-2012 by Moolanomy.com. All rights reserved.