Shoppingjeannie's Blog

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Negotiating Debt May Attrack…

I have done some researching lately on debt negotiators and how it all works.

First, let me just say, NEVER allow anyone to negotiate your debt. Once you do that, the company that does it and the creditors involved turn it in via the IRS.

Secondly and most important, everything I can find on this nasty topic that is running rampant in our society is that the amount you don’t pay on the actual debt you owed is considered INCOME to the IRS and guess what? You get to pay taxes on it. Now if someone thinks I’m wrong I will continue to research the topic but mind you I’ve done this research out of my curiosity only (we don’t negotiate debt) and I know several people who have done this and they all got a nasty shock at tax time and ended up PAYING due to what they did.

Re-financing your mortgage is one thing but going the other routes to really ‘re-do’ that mortgage and get major help may cost you more than you bargained for in the end and if you get hit with a tax bill from the IRS and you don’t contact them to negotiate IN WRITING to get the tax debt paid off they do have the power and authority to go after your paychecks and and bank accounts and they will get paid no matter the cost to you.

Lesson: Read and research debt negotiations of any kind BEFORE you agree and jump into it. You may lose to the tax man in the end and you don’t get to negotiate much with that group.

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September 11, 2010 - Posted by | Life, Workshops/Lessons

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