I am sorry it is $35000... greatly appreciate your responses! Could you tell me about the cons and pros. I know my credit will be ruined after going through this and I hope to use the board to get it back on track.
I've been told that the amount of the debt you don't pay (in other words, the amount the credit card companies are willing to do without) can be reported as "income" and you'll have to pay taxes on it. The cc's will often put "settled for less than the full amount" (or something similar) on your credit report. That's not good at all -- settling doesn't save your credit.
Well, duh. The point is that s/he may not have been told about the tax consequences and/or the hit on their credit reports. Those in the "settling" business try to make it sound like there is absolutely no downside to settling. The original poster deserves to know the whole story.
I am aware of the tax liability; but I am more concern as to the reporting by the banks; but I guess the agents settling my debt will have to work that in the negotiations.
