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masraum masraum is online now
Back in the saddle again
 
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Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 57,086
We looked into it at one point and decided it sounded like a very bad idea. Yes, as mentioned, for the CC co to want to negotiate, you have to stop paying on all of your credit cards and get way behind (means the hassle of many, many collections calls).

Not only that, but when they "write off" some of your debt, for instance you owe $20k, but they settle for $5k, you may get a 1099 for the other $15k which would bump your income tax.

Not a good idea. I'd avoid it if at all possible.
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Steve
'08 Boxster RS60 Spyder #0099/1960
- never named a car before, but this is Charlotte.
'88 targa SOLD 2004 - gone but not forgotten
Old 03-29-2012, 06:29 AM
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