Did Worden & Associates Settle My Debt? How Do I Know?


Dear Steve,

I had two credit cards totaling over $30,000.00, and I went with Worden & Associates. And they say they have settled on the smaller one.

How do I know it is settled and never to return? And will it hurt me on my taxes? What about the larger one, which is not trying to settle cheaper?



Dear Richard,

Thank you for contacting me.

I’m concerned you don’t appear to feel you have a strong relationship with Worden & Associates, who you hired to assist you.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Your questions should be directed to them, and they should provide exceptional customer service to help answer them.

If Worden & Associates told you an attorney is representing you, ask for the contact information of the attorney licensed in your state that has your case.

If a debt was settled, there is often a debt settlement agreement letter describing the deal’s terms. You should ask Worden & Associates for a copy of that letter.

Can it hurt you on taxes? It could. If your assets are larger than your liabilities and you are not insolvent, then you can owe tax on debt forgiven more than $600. You should expect to get a 1099-C from the creditor forgiving the debt.

If you are insolvent, then read IRS Form 982 is Your Friend if You Got a 1099-C.

Regarding the larger one, contact Worden & Associates today and get answers from them. If they don’t respond or give you the needed information, come back and let me know.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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