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Debt Settlement Versus Debt Management – Franklin Debt Relief Shows It’s No Contest |
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A new report issued by Franklin Debt Relief CEO, Robert Zangrilli, to the FTC, titled “Common Sense,” shows conclusively that based on statistics from both the debt settlement and credit counseling industries that debt settlement produces more consumer welfare than credit counseling, and in fact, consumers who use credit counseling programs that eventually file bankruptcy lose more money in non-refundable payments to creditors than consumers who complete their plans save from interest rate reductions. |
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Credit Card Debt Help:
& Taxes |
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Call Today: (877) 274-1260 |
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If you
successfully complete our program, it’s possible
that you’ll enjoy these benefits: |
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Settle your debts for less than you owe |
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(read here for full details about how much you can expect to save) |
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Resolve your unsecured debts in 18 to 60 months |
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(read here for full details on how
long our program lasts) |
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Backed by a Money Back Guarantee on Service Fees |
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(read here for full details about our
money back guarantee) |
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| Tax Implications of
Debt Settlement |
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(Franklin Debt Relief cannot offer tax or legal advice because we
are not professionally licensed in these areas. The author of this
piece is not a CPA, lawyer, or tax consultant. This is meant for
educational purposes only and for tax advice regarding your
situation, please contact a licensed professional.)
One of the common disadvantages of using debt settlement for debt
relief is that there can be potential tax liabilities associated
with your savings. The IRS mandates that taxpayers report cancelled
debts with balances of $600 or more on Form 1099 as income. While
this may potentially cause the overall cost of your debt settlement
program to increase, there are several important points that any
consumer seeking debt relief should keep in mind.
Many taxpayers are technically insolvent at the time of settlement,
which means they aren’t required to pay taxes on the forgiven
balance anyway. One need not file bankruptcy to be considered
“insolvent.” Insolvency, as defined by the IRS, is a financial state
where one’s liabilities (debt owed) exceed their assets (equity in
property). Many consumers who are considering debt settlement are so
overextended that being insolvent, or having a negative net worth,
is possible. By filling out an IRS Form 982 with their tax returns,
consumers may be relieved of their tax obligations on the forgiven
balance by the amount which they are insolvent. For more
information, one should always talk to a tax professional about
their individual situation, however.
.For more information about debt settlement, please feel free to
call (877) 274-1260 or
fill out a form and we’ll contact you as soon as
possible. |
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