My dad owes around $100,000 on a Discover credit card. They made an offer for him to pay 60% of that balance. He is asking for my help and I'm so lost on what to tell him.
- Discover made an offer to my dad allowing him to only have to pay 60% of the balance, so $60,000.
- Even if this amounts to "small" monthly payments he will still have to pay taxes on that debt forgiveness of $40,000, which would be due all at once I presume?
- Can he or someone else negotiate this down even more? I'm really worried about the tax he would have to pay on the debt forgiveness since he basically has no cash flow.
- What happens if he misses a payment?
- Maybe bankruptcy is a better option? Would talking to a bankruptcy attorney being a wise way to go about this and see what they would suggest?
- Is there anyone else he can speak to to help him decide what the best course of action is?
- He is in his mid 60s and his credit is already not very good.
- He also owes smaller amounts on different credits cards.
I'm sorry about all the questions and the randomness of them but any hint of advice or direction would be greatly greatly appreciated.
Submitted July 29, 2020 at 08:46PM by shakesprings https://ift.tt/3gbGEUp
