Credit Issues of my own doing


Since NDR is setting less than what I owe … I am having to pay taxes on the difference s. Meaning the amount I did not pay is added as income earned that I did not pay taxes on. But it I what it is.


The creditors are giving you 1099-C’s, not 1099-R’s. I recommend having your taxes done by a professional as the imputed income on a 1099-C can be dismissed under some circumstances. You can file out a personnal balance sheet, listing your assets and debts on the date listed on the 1099. If your liabilites exceed your assets, the forgiven debt will not be counted as income.

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I have a similar situation. Only in my case, I have held a secret clearance since 2001, with a reinvestigation performed in 2011, then I retired from AD in 2014 and went straight to work for a Navy contractor. I changed jobs in 2016 to another Navy contractor. I am now up for a periodic review. In late 2017, I had a real estate deal go horribly wrong and lost all of my equity in the project which led me down a path toward debt settlement. I chose a different company but similar sized debt. None of the debts are settled yet, and my settlement company told me to expect about 36 months from start to finish. I have been paying 1382 per month to fund a settlement escrow account and pay legal fees.

My actual question is: regarding listing the affected accounts, two are in my wife’s name only. I am NOT a guarantor or co-signor in any respect and they do not appear on any of my three credit reports (but do appear on hers), but those accounts are enrolled in the same settlement program with mine. Do I list these accounts as well?

I expect a brutal interview, and have been advised to expect an SOR in the near future. What should I expect in terms of the timeframe for actually losing eligibility? I mean, do I get to appeal any decisions before being fired from my job?


You need to provide more details to us. why, when, and how did you get into the debt? How much is the debt? Have you exhausted all avenues to pay the debts? What plans do you have to pay the debts etc. Why do you assume your interview will be brutal? Why do you expect an SOR? Do you have any other issues? Have you consulted with an attorney, credit counseling, bankruptcy?