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November 2014 Archives

Statute of limitations for credit card debt

Arizona residents who are in debt may not be aware that there is a statute of limitations that applies to credit card debt. That period is six years. This means that a debt collector has a limited amount of time to take legal action in order to obtain a debt. However, this does not affect the impact the debt may have on the debtor's credit.

What to do when creditors sue over an outstanding debt

Arizona residents who are sued by creditors or collection agencies over an outstanding debt may wish to fight the matter in court. Once a judgement is awarded, the only way it can be changed is by a court order, and it may be difficult to dispute the amount in question. A judgement also gives creditors additional tools to collect an outstanding debt. The amount of the judgement could also be higher than the debt in question due to the addition of collection costs and legal fees.

Can taxes apply to canceled debts?

In Arizona as in the rest of the U.S., the IRS requires creditors to disclose all canceled debts of $600 or more on a 1099-C tax notice. In most cases, the agency considers canceled debt a form of taxable income, so people failing to report such debts on their income tax returns could receive an audit that could result in additional taxes, penalties and interest. Those who receive these notices may want to speak with a tax professional before filing their income taxes to discuss their options.

Dan R. Dodds Dan R. Dodds

At the Dodds Law Firm, I focus my practice on the needs of individuals who have suffered losses because of abusive, deceptive or unfair conduct by others. I also provide comprehensive counsel in all matters related to Chapter 7 and Chapter 13...Read More

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