Settlement/Discharge over 50% must be reported to IRS? What?

[CreditDrama85]

i was thinking of accepting a settlement on a CC, but when i read the fine print....it said something along the lines of what i have in the subject line...about it being reported with the IRS. huh? what?

that doesn't sound good? what does this mean in dummy terms? what are the effects or the outcome?

[Anonymous]

Yep-

They can 1099 you for the discharged amount within/over IRS limits.

You can/will get TAXED on the discharged amount.

[Junejer]

It'll count as income.

[Anonymous]

If the amount of settlement is over $600 they can send the IRS a 1099.

[Anonymous]

What is your SOL on it?