One major disadvantage of debt settlement is that the government may tax forgiven or canceled debt as income. This could eat ...

A debt validation letter is a notice debt collectors must send to help you determine that a debt actually belongs to you. Many, or all, of the products featured on this page are from our ...

That gives you $20,000 of protection from taxes on debt forgiveness. But if your creditors forgive $30,000, you'll owe tax on the extra $10,000. The IRS has a handy sample worksheet on its site to ...