Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

Brian L asked:


Could someone please explain line 10a?

Line 10a. In the case of a title 11 case or insolvency (except
when an election under section 108(b)(5) is made), the
reduction in basis is limited to the aggregate of the basis of
your property immediately after the discharge over the
aggregate of your liabilities immediately after the discharge.

(what does all that goop mean?)

Also, what does it mean below by (other than qualified principal residence indebtedness) ?

A nonbusiness debt (other
than qualified principal
residence indebtedness,
such as a car loan or credit
card debt)

I had a Credit card cancel debt and two mortgages, one mortgage was a second mortgage on my main house, the other was a second mortgage on a rental.

Any help with filling out this form is appreciated.

Cortez Fuchser

answers for people! asked:


I’m creating a debt reduction plan, and one of the questions I have is this: is it better (financially) to eliminate mortgage debt before educational loan debt? I want to pay the least amount of interest so I would think the higher interest rate (mortgage) is what I should pay. However, there are tax advantages to both mortgage debt and school loan debt, and I’m not sure if I would be missing out on better tax advantages by keeping mortgage debt until I have eliminated school loan debt.

Any advice is appreciated.

Augusta Fatheree

Vickey C asked:


This was a reduction of credit card debt and was for 928.00

Iris Hepp

mog_ron asked:


I aquired a tax debt while single and am in collections currently (An installment agreement). I got married 3 years ago to a woman who has been a full time grad student from the beginning and has not earned enough to have to file taxes in those 3 years. She has insisted that we file married but seperately because she is afraid of collection actions against her because of my tax debt but because of this we are losing the tax benefit of filing jointly thus gaining more credit each year toward my debt (I’ve been filing 0 dependents and having the max tax taken out of my paycheck to get the highest returns which the IRS applies to my debt). We may have an opportunity to submit an offer in compromise soon and put this behind us. Should she fear bad credit, a collection action against her, etc if we change our status this year and possibly amend the previous years we been married to exellerate the reduction of the debt before and until we apply for the OIC?

Gussie Bodor