Debt Settlement and Form 982?

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      I am going through debt settlement and trying to plan accordingly. I am a renter and only own an old Jeep worth roughly $ 1,000, bank account after I get on the plan will stay around $ 2,000 and other than that, the car I drive, I’m still paying on so hoping someone can confirm my understanding of the law.
      Estimated total debt of cards to be settled: $ 82,000 (does not include my current car note)
      Estimated assets (jeep & bank account): $ 3,000
      Insolvent: $ 79,000

      So if the debt is settled for, lets say 60% of total it would be $ 49,200, therefore the remaining $ 32,800 would be reported on a form 1099C.

      I would then take that $ 32,800 and subtract the amount of my “insolvency” of $ 79,000 and any taxes would be due on any positive difference. However, since my “insolvency” exceeds the “Income”, it is highly likely that no taxes would be due on the income?
      1) Am I correct in the above?
      2) When calculating “liabilities” for insolvency, do I need to include the amount of my car note?
      3) Since I do not have the title for the car, and still paying a car payment, it is not an asset, correct?
      4) If the debts are settled independently, as each is settled, the total amount of my liabilities and assets is the liabilities at the time of each settlement, therefore as they are settled, the liability amount will go down?
      Granted 5% would be great, but I am planning realistically and from what I have seen 35% to 50% is more typical.
      As for the car, so I would add it as an asset but since I am still paying for it, the note would also be added to the liabilities so it basically offsets…. I.E. worth $ 20,000 but owe $ 27,000 (bought new but before all H*** broke lose and trouble started)
      So Assets would be $ 23,000 but liabilities would then go to $ 109,000, so insolvency now goes to $ 86,000 vs $ 79,000.
      I apologize for adding “additional details” but can not seem to find the “reply”.
      My credit already was hit big time due to the debt/income ratio so either way credit sucks but bankruptcy really is not an option for me as from the attorneys I have talked to. Primarily due my line of work… better to put up with bad credit score that will slowly rebuild vs the 7 to 10 yeas of automatic bad credit.
      As for the settlement.. yes going through a company but they get nothing until settlements are made. Their fee is 5% of the “savings” and only paid once settlements are reached. No Admin fees / banking fees… the only fee is a one time fee of $ 150, taken from my first payment for the attorney, which is licensed to practice in my state and I have already talked to him.
      The one thing that upsets me about all of this is the fact that if it wasn’t for medical bills and a funeral, I would not be in this state…. Dang.. heart attacks and strokes are expensive, even with insurance…

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