Settlement estimator
A rough range for what a debt settlement program might cost after fees and taxes, and what it doesn't show.
How this works
- Creditors are paid a share of the enrolled balance; that share is a range you can change.
- Company fees are a share of the enrolled debt. Under the FTC's rules they can't be charged before a debt is settled.
- Forgiven debt is often reported on Form 1099-C and can be taxable. If you owed more than you owned just before it was forgiven, part or all of it can be excluded (Form 982).
- It does not model late fees and interest that keep growing while accounts go unpaid, or lawsuits from creditors.
Sources
- IRS Publication 4681: canceled debts
- IRS Form 982: insolvency exclusion
- FTC: debt relief services and the Telemarketing Sales Rule
Awaiting expert reviewPreview build. Estimates only; not financial, tax or legal advice.
Common questions
How much does debt settlement cost?
It varies. Creditors accept a share of the enrolled balance, and the company charges a fee that is a share of the enrolled debt, so the estimator shows a range you can change. Under the FTC's rules, a company can't charge its fee before a debt is settled.
Is forgiven credit card debt taxable?
It can be. Forgiven debt is often reported on Form 1099-C. If you owed more than you owned just before it was forgiven, part or all of it can be excluded using Form 982. A tax professional can confirm how it applies to you.
What doesn't the estimate include?
Late fees and interest that keep growing while accounts go unpaid, and lawsuits from creditors. Settlement also damages your credit, and creditors can still sue.
Is the information I enter saved or sent anywhere?
No sign-up is needed. Your numbers are saved only in this browser, and the other tools on the site reuse them.