Answered on Dec 19, 2010
You should also consider that some of the difference between your original debt and settled debt could be reported income, which you will be taxed on. If you settle an account, be sure to ask whether the settlement amount will be reported as income.
Timothy P. Brennan, Esq.
Croslis & Brenn an Law Offices
2030 Tilghman Street, Suite 203
Allentown, PA 18104