My husband just settled for 50% of his 50,000 in credit debt.?

Question

How long will his credit be ruined and how much will we pay the IRS? Since we do have to file a 1099

Answer 1

The settlement will stay for 7 years.

The IRS will want you to pay income taxes on $25,000 of income, which comes to about $6,000.  

You have until SEPTEMBER 15, 2008, not April 15, 2009, to come up with the money.

It's called "quarterly estimated payments".

You can get a refund, and still pay a penalty for underpayment, if you wait until January to pay your taxes.

Answer 2

Wh

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Answer 3

poster one is courrect but i think you can get by making two payment to irs on sept 15 and one jan 15!!!!

Answer 4

If these bills were already past due and charged off, his credit isn't going to get any worse. The negative marks can remain on his credit report for a maximum of 7 years from the date of first delinquency.

The creditor will likely issue the 1099c for this, but remember that they can only issue it for the original amount owed. They cannot issue a 1099c that includes interest and other fees.

Answer 5

You should use credit repair agency to fix your credit - for example this one - http://buildcredit.ifastnet.com - They can clean lots of bad stuff from your credit report - and do it much faster than yourself, so your credit will go up fast.