Category Archives: Taxes

Forgiven But Not Forgotten: IRS Considers Forgiven Debt As Taxable Income

There are many reasons why bankruptcy may be a better solution to overwhelming debts than debt settlement. And here’s another one: tax savings. Millions of Americans unable to pay credit card debt and other large debts turn to debt settlement each year. But while creditors may agree to discount your debt, that doesn’t mean you’ve… Read More »

As Paychecks Shrink and Debts Grow, Bankruptcy Becomes a Viable Solution for More Americans

Lawmakers may have stopped us from going over the dreaded fiscal cliff, but the deal reached on Jan. 1 isn’t a perfect solution. The agreement hammered out just in the nick of time will extend many tax cuts that were set to expire this year, from the Mortgage Forgiveness Debt Relief Act of 2007 to… Read More »

Household Debt Hits New Low, But Expiring Tax Cuts Could Obliterate Savings

U.S. consumers had more money in their pockets this year. Unfortunately, those fatter wallets may not last long. The household debt service ratio, which looks at the amount of mortgage and consumer debt in relation to disposable personal income, fell to its lowest level since 1983 – nearly 30 years ago – in the third… Read More »

Losing a Home to Foreclosure Could Mean Big Taxes If Exemption Expires in January

Usually the first day of a new year means a fresh start. But if a federal tax exemption is allowed to expire, this Jan. 1 could mean disaster for troubled homeowners. When a portion of debt is canceled or forgiven, that amount is often considered taxable income by the IRS. However, thanks to the Mortgage… Read More »

Rising Number of Consumers Plan to Put Tax Refund toward a Tennessee Bankruptcy Filing

In the past, Americans have tended to put their tax refunds toward family vacations, new cell phones, and other fun indulgences. This year, however, many cash-strapped consumers are spending their checks from Uncle Sam on something a little less frivolous – but potentially more rewarding in the long-run. More than 200,000 Americans hope to apply… Read More »