Justed wanted to Say Thank You to Everyone who posts on this board!

[afraseribm]

While deciding wether to file or not, we were able to get on a very strict budget and cut our expenses in preparation for a CH 13. We had all the paper worked filled out and even did the couseling... we were all set to file on Monday but decided to give it another try on our own...

Our budgeting has allowed to to find almost an extra $750 a month, not sure how we did it but its there...

We have been with a Debt Settlement company for the past 8 months and we are starting to see settlement offers come in around 60-70% off the balance due. We have paid a few of those the past few months and made arrangements with 2 others for monthly payments on the settled amounts. It is by no means over, we have several of the larger accounts with hefty balances left but we are off to a good start.

I have received so much valuable and knowledgeable advice from this board that I am not sure how I would have gotten to this point without reading all the threads and reply's here.

Thank You and keep up the good work....

While we have no ruled out Ch 13 yet... never know what might happen down the road with jobs and such... I hope we are on the right track..

Thanks Again!

[indebt00]

I agree that this board has been very helpful and supportive over these last few months.
It really does help to know there are people out there in the same boat as you.

[lrprn]

While we have no ruled out Ch 13 yet... never know what might happen down the road with jobs and such... I hope we are on the right track..

Time will tell, afraseribm - we all wish you the very best getting out of debt.

Be sure to start putting some money away now because if you aren't already aware, as your unsecured creditors agree to reduce the total amount you owe them, the IRS interprets the difference you are forgiven as income and will tax you accordingly next April - see http://www.taxresolution.com/blog/di...cent-tax-case/ .

It seems there's so very many daunting obstacles to digging out of huge debts.....it's incredibly draining. Hang in there, and again, the best of luck to you regardless of which recovery path you take!

[AngelinaCat]

It seems there's so very many daunting obstacles to digging out of huge debts.....it's incredibly draining. Hang in there, and again, the best of luck to you regardless of which recovery path you take!

Not only the IRS, but possibly your State. We here in Florida because of our esteemed *ahem* Governor's fiscal policies, are finding our counties, cities, and towns in fiscal distress.

So what does the State do to make up it's shortfall? Impose new and higher fees on us the citizens. An automobile tag that USED to cost around $45.00 or so dollars, now will jump to more than $74.00 on September 1, 2009.

Our newspaper article about the increase, says that 100% of the new fee will go to Tallahassee. None of it will be returned to the counties.

[woeisme]

tax consequences

From Wickipedia

Another common objection to debt settlement is that debtors whose debts are partially canceled outside the bankruptcy system will need to report the canceled portion of the debt as taxable income. (IRS Publication Form 982)

The IRS considers $600 or more of forgiven debt as taxable income.[citation needed] The forgiving creditor must provide the taxpayer with a 1099-C tax form. This form will list the amount of forgiven debt and interest in Box 2. Taxpayers with portions of personal loans forgiven may not subtract the interest reported in Box 3 from the amount of reportable income on this form.

However, the IRS does not require taxpayers to report forgiven debt if the tax payer was insolvent at the time the creditor forgave the debt. Being insolvent means that the amount of a debtor’s debts are greater than his/her assets (how much money and property the debtor owns). However, the IRS adds that “you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent.”[7]

For example, if a taxpayer is $10,000 in debt and owns $3,000 in assets, he/she cannot exclude more than $7,000 of forgiven debt from his/her income tax. Any forgiven debt over $7,000 that year must be reported as taxable income.

[sassiebaz]

Great! But why wouldn't you file bk????

[AngelinaCat]

Wikipedia

Wikipedia is great source of information. However, please take it's information with several grains of salt. It's contributors do not always supply up-to-date and factual information.

I just read an article today from ComputerWorld stating that the Wikipedia programmers and moderators are taking steps to better screen erroneous and false information from being posted.

[BigJohn]

Not only the IRS, but possibly your State. We here in Florida because of our esteemed *ahem* Governor's fiscal policies, are finding our counties, cities, and towns in fiscal distress.

So what does the State do to make up it's shortfall? Impose new and higher fees on us the citizens. An automobile tag that USED to cost around $45.00 or so dollars, now will jump to more than $74.00 on September 1, 2009.

Our newspaper article about the increase, says that 100% of the new fee will go to Tallahassee. None of it will be returned to the counties.

I paid about $350.00 this year for my truck's tag. You got it easy.