Home - CBSNews.com | 3 unexpected downsides of debt relief to know before enrolling

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Before enrolling in a debt‑relief program, especially debt settlement, borrowers should weigh three often‑overlooked drawbacks: the process usually requires stopping payments, which can cause missed‑payment marks, delinquencies and charge‑offs that dent credit scores more severely and for longer than expected; any forgiven portion of the debt may be treated as taxable income, potentially creating a surprise tax bill unless you qualify for an insolvency exception; and the timeline is often longer and less predictable than advertised, since funds must be saved before negotiations begin and creditors may respond at different speeds, leaving you vulnerable to collection calls, fees, or lawsuits during the wait. Understanding these risks helps determine whether debt relief, credit counseling, debt management or consolidation is the best option.

Read more: https://www.cbsnews.com/news/debt-relief-downsides-to-know-before-enrolling/

#IRS #creditors #debtrelief #taxliability #creditscore

Via Nicholas Fanpos on Twatter:
New: #MaziPilip, the GOP candidate to replace Santos, filed her House financial disclosure.

She reports between ~$1-5m in assets, largely in bitcoin and her husband’s medical practice

Unusually, Pilip also reports a $100k-250k #taxliability to the IRS.
My take:
[Did she place $ in Bitcoin to avoid the IRS, MD's cannot have their medical practices operated by laymen pursuant to NYS law]