In a post on another blog, Gerri Detweiler from credit.com tells a story about how one of her readers had about $30,000 of credit card debt forgiven with her help.

Fortunately, most of us cannot have our debt forgiven like this. Fortunately?

Yes… The man in question, Joe is his name, is on disability with health issues and his wife is ill also.

Well, Joe has about $30,000 in credit card debt that he is unable to pay. Gerri suggested that since he is essentially judgement proof, meaning that his only income is from disability, that the card company can probably not expect to collect anything from him should he default.

Joe called his credit card company and told the the story. They replied back with a letter saying in part:

After further review and based on the information you have provided, I would like to confirm that we have updated our account records to ensure that there will no longer be any collection efforts made on this account. Additionally, monthly billing statements will stop, and there will no longer be any payments due. The remaining balance will be charged-off as a loss to the bank.

Now Joe may have some potential tax liability because he will be receiving a 1099-C form (as well as will the IRS from the creditor), but because of his situation, he may not be liable.

For the whole story, go to the Easy Debt Reduction blog.

Fortunately most of us are not in the position to have debt written off like this, but there are options. If you have more than $10,000 in unsecured debt, you may qualify for debt negotiation. If you would like more details, click here for the debt negotiation site, or contact me at 219-695-0369 or email scott@nwiloanguy.com.

Scott

PS. If you are not familiar with Gerri, you should really check out her blog. She was a previous guest on my radio show and was one of the most highly requested replays. She certainly knows what she is talking about and is very highly respected by her peers and I.