Here's another thing that needs to be changed. Those who are up to their ears in credit card debt and try to do the honourable thing by making an offer in compromise to settle the debt will pay taxes on whatever amount the credit card company writes off IF it is over $600. The credit card company sends out a 1099C form which reports the amount to the Feds. Then they write it off and take it off on THEIR taxes! So, the debtor winds up paying one way or another anyway. I am not saying debtors should get off the hook, but if they really are sinking and have made a sincere effort, they should NOT be penalized in this way.