Here is a NY Daily News article that explains that there may be nasty tax conseqences from debt settlements. This may be a reason for some to explore bankruptcy as an alternative.
https://laninlaw.com/wp-content/uploads/lanin_law_p.c_large_340x156-for-enfold-website-300x138.jpg00Scott Laninhttps://laninlaw.com/wp-content/uploads/lanin_law_p.c_large_340x156-for-enfold-website-300x138.jpgScott Lanin2010-08-13 10:20:442016-12-10 02:48:18You’ll Likely Owe Income Tax On Deals You Make With Creditors