Credit Card Debt Forgiveness

I need to know how to write a proper credit card debt forgiveness letter.
My mom passed away and there are no more funds in her Estate and the bank needs a letter of forgiveness.
All I can find on line are samples of letters for people who are still alive.

When I worked for a collection agency the process was a copy of the death certificate and if there was an estate the lawyers contact information

2009-10-06 10:46:22 by lynna1682

creditcarddebtforgiveness.net Struggling with credit card debt? why not try your lenders credit card debt forgiveness program and pay just pennies ...

They announced in the news that companies are willing to forgive from 10 to 40% of the debt, and allow up to five years to pay it off with no interest. This is due to the economy. This isn't a "company" that is offering some sort of program.

This is only a proposed idea by a consumer advocacy group and some major banks and is not yet available.
The new pilot program — which the banks hope will become permanent — could involve as many as 50,000 people struggling with credit card debt. On an individual basis, the amount of debt to be forgiven would rise according to the severity of the borrower's financial situation, up to a maximum of 40 percent.

But this program does have it's downfall.

There would be a tax benefit. Borrowers would be able to defer payment of income taxes they owe on the forgiven part of the debt until after the remainder was paid off. The lenders could wait until then to book their loss on the forgiven debt.

Also, it would affect your credit score in that this would become a charge off on ones credit report and will lower ones score.

Hope this answers your question

2008-11-07 18:07:29 by jezuzgirl

Title pretty much says it all! As with many folks nowadays, I am staring down bankruptcy, and would like to get some expert's (or those who have gone through this and succeeded) advice. I have ventured on my own, and have been unsuccessful at achieving either a rate reduction or debt forgiveness.

You certainly aren't alone, so many are facing the same thing.

What you need is a third party, independent advocate, to intervene on your behalf. Call Lifeline or the Salvation Army and ask to speak to their financial counsellor. If you belong to a church, they may have someone who can help you. You may have to wait a little, but do explain how urgent it is and they may be able to delay things for you. Whatever you do, don't go into further debt, trying to get another loan to pay out what you already have.

Also please don't get involved in any 'new schemes'... you have to work with what you have now. There is light at the end of the tunnel.

Best wishes.

2008-10-30 15:06:37 by Induced Karma

As I said, if the IMF & World Bank gave a debt relief for the third world, why not our Banks and creadit Co. gave credit Card debt relief (forgiveness) who are paying tax and excessive interest (from 14-21%). This of course, doesn't include the late fee and the penality for not paying.

For example, City Bank has an asset of #60 trillions from the profit they get from us. Bank of America has the same profit while we the middle class are becoming poorer and poorer. Is there a government who is protecting its working and middle class from rip off to death by those greedy credit card companies and Banks? Don't you think we have to do something about it?

The banks and corporations are getting rich off of you. Why would they want to stop?

The government is owned by the same banks and corporations, so they're not gonna help either.

I also agree with the first poster ... Spending money that you don't have is not a good idea. Of course, the only differences between City Bank and a Loan Shark is that City Bank won't beat you up if you don't pay and they have a corporate logo.

I disagree with the 3rd poster. Credit card companies collect a percentage of every purchase from the seller, not just finance rates. So, they make money on everyone who pays it off every month too. And come on... 21% interest rate is Organized Crime territory!

2007-06-14 14:58:59 by LMiserab

I was told that in the year I would have a credit consolidation that I should file a #982 form. This will do what for me? I have concerns about with the "forgivness of debt" becoming a taxiable income.

When the debt is cancelled, you will get a form 1099-C for the amount you aren't paying.

The IRS says to add this to your income. If you are in the 15% tax bracket and had $10K cancelled, you pay income tax of $1500.

If you are either through bankruptcy or are insolvent, you use form 982 to POSTPONE the cancelled debt to a later year. For the totally broke, they may never include the money in income. For others, they will.

If you aren't broke, you can't use the form.

See irs pub 4681.

2009-03-19 20:20:59 by P-in-B