"Do nothing" - insolvent before write-off?

[legal_wonderer]

What is the name of your state? Tennessee

According to the NOLO book, to avoid having to pay income tax on a debt write-off, one needs to be insolvent prior to the credit card companies doing the write-off.

I am definitely insolvent. My debt is rather high, and I have no income and no assets. I have an excellent credit history and the companies seem shocked. My credit rating was very high.

How hard is it to ride out the phone calls and such? How many months should I expect to be "hounded" before they write me off?

Is there any reason I would prefer the write-off, phone calls and possible tax burden to bankruptcy besides not having to pay $207 that I don't have right now.

Thanks,
lw

 

[Ezlpo]

In my experience.....

..... credit card companies would probably hound you for a year.

With caller ID it isn't too hard to avoid them. Just don't answer phone calls from numbers you don't know. Let them leave a message if it is important.

If it is enough though, won't they take you to court? If they did then that debt would last forever unless you paid it off or filed BK.