Cancellation Of Debt & Related Pitfalls
Debt cancellation may seem like a dream come true, but there are some potential pitfalls to be aware of before you sign on the dotted line.
First, if your debt is cancelled, you may be responsible for paying taxes on the amount of debt that was forgiven. This is because the IRS views cancelled debt as income. So, if your debt is cancelled, be sure to set aside money to pay any taxes that may be due.
Second, cancelling your debt may have a negative impact on your credit score. This is because creditors will see that you have less debt and may view you as a higher risk borrower. So, if you're planning on taking out a loan in the near future, you may want to think twice about cancelling your existing debts.
Finally, make sure you understand all of the terms and conditions of any agreement before signing it.
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.
Our goal is to help you find a fresh start FAST!
Schedule your absolutely free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706