Old medical debt (the kind you get for 1%) doesn't have a big impact on credit scores and don't they owe income tax on the forgiven debt? I wouldn't pay income

Old medical debt (the kind you get for 1%) doesn't have a big impact on credit scores and don't they owe income tax on the forgiven debt? I wouldn't pay income tax on something like half million dollars for a slightly better chance to be able to take out a loan at what will be 10% or so soon.