Debt Settlement, Debt Consolidation

[edward123]

Hi,

I know that when you do a debt settlement, you are taxed on the forgiven amount. What about when you do a debt consolidotion? Are you taxed as well?

Thanks

[Minnymouth]

Not really sure if we can answer this correctly or not but I'm assuming a consolidation is like a refinance and there are no taxes on that, that I know of.

The forgiven debt is treated like income which would have taxes on it....

Maybe someone else can throw in some knowledge in this area???