I’ve heard that doing this counts as “income,” therefore you have to file it with your taxes the following year. Is this accurate for New York City, and what happens if I forget to include it on my taxes?
There are hardship offers available, and I have personally experienced this. My experience tells me that you’ll need to pay off the outstanding balance or get current if you want to keep it open. Generally, an account will be closed if less money is paid than what is outstanding. A number of my cards haven’t been paid for months. I was successful in having a few late fees dropped (up to one or two per year). The account overview showed an accessible balance as soon as I became current.
I haven’t fallen behind on anything yet. However, because it’s quickly approaching, I’d prefer to close as many accounts as I can to avoid filing for bankruptcy.
In addition to keeping the account active and in good standing with no negative information on the credit reports, I would like to arrange a paid-in-full, as agreed lump sum payment.
You’re asking for too much without offering anything in return; this isn’t realistic. Would you forgive 25% of someone’s debt with no consequences?
Regarding Chapter 7, if your debt is unmanageable, consider creating a personal “HELOC” account afterward. Learn from the experience and use the fresh start wisely. Save monthly, or weekly if possible, to invest in your future.
Alright, so the answer is essentially no.
Is it better to settle the remaining balance on two large credit cards and accept the Settled in Full damage on one’s credit score rather than filing for bankruptcy? About securing a HELOC loan a few years following.