Also, any debt that is written off by the bank is considered income and is taxed accordingly. So, if you have a 20,000 credit card that gets sold off to a collection agency, you will receive a W-2 with that amount as income with no taxes paid.
only IF the debt holder can show in court they are legally entitled to collect the debt which they can’t do in almost every case.
if they can’t the judge will not enter a judgement for any amount.