Bankruptcy

The "Do It Yourself Bailout" – Part Six of Jonathan's Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar? Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn. Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation. Here is part six of our conversation – it lasts about 4 minutes. This is the last segment of this interview – parts 1 through 5 may be found in the five posts immediately preceding this one. In this segment, Kenny and I talk about the tax consequences of debt forgiveness and the insolvency rule that eliminates tax liability for most people.

Link to IRS Form 982 – used to declare forgiven debt as non-taxable

Link to Kenny Golde's book "The Do It Yourself Bailout."

Full post as published by The BK Blawg on February 05, 2010 (boomark / email).