Legal Question in Credit and Debt Law in Texas

Settlement Offer from Credit Card Agency

I received a settlement offer from a credit card company which issued a gas card I had through Citgo. The balance was $2029.68. They offered to settle for 55% or $1,116.32. However, they stated that the $913.36 difference would be submitted to me as income on a 1099. I had never heard of this. Is this correct? Thank you.


Asked on 12/07/04, 5:38 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Settlement Offer from Credit Card Agency

Yes, it's correct, although not usually done because of the additional paperwork. The unpaid benefit can be treated as untaxed income.

Do not give them your Social Security Number if they ask for it, since your credit information should be sufficient for them to issue a 1099.

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Answered on 12/07/04, 5:54 pm


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