outofcountry1 Posted May 21, 2005 Report Share Posted May 21, 2005 Do I understand this correctly?Credit card debt discharged in Chapter 7 is not a taxable event.Credit card debt forgiven in a settlement agreement is to be included in income. Link to comment Share on other sites More sharing options...
ghacorp Posted May 21, 2005 Report Share Posted May 21, 2005 I believe you are correct! Only if the debt settlement exceeds $600 and a 1099C issued should the event be subject to miscellaneous income tax. Debts not officially discharged are also not subject to income tax. Link to comment Share on other sites More sharing options...
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