Chapter 13 Bankruptcy Information

“Don’t ruin your credit by filing bankruptcy!”

“The secret the credit card companies don’t want you to know!”

“If you owe at least $10,000 in credit card debt, you are eligible for our program!”

“Recent changes in federal law require credit card companies bailed out by the federal government to settle their debts with you!”

Hey, when something sounds too good to be true, it is.

Most recently, the Minnesota Attorney General sued six of these debt settlement outfits

My position has always been, bankruptcy is a last resort.

Let me share some of the pitfalls my clients have hit with these miracle programs.

First, this is how they operate.

They are usually not located in the state you are in, so they are hard to chase for refunds or misconduct.

Their ads and websites and phone calls trumpet their success, but the contract you sign guarantees nothing.

You send them money, usually taken right out of your bank account, and they do not even talk to your creditors until they have a certain amount from you.

It may take months, years, before they have enough from you, after deducting their fees, of course, to even answer their phone when your creditor calls.

And, the creditors do not call often, they just sue you, garnish your wages in states that allow it, like Michigan.

Of course, you are behind on paying the credit cards, because you are sending what you have left every month to the friendly debt settlement company.

And/or, they told you, stop paying the credit cards.

So, your credit report is taking the hit for being in default, the hustler/con man debt settlement company has your money, and you have no relief.

In fact, you are getting harassed more than before you hired them.

I represented one couple, in their 80s, who were so ashamed of their debt problems, they did not tell anyone.

Their kids were helping them out, and they hired two of these debt settlement scam outfits, to handle one credit card each.

After over six months of paying, all they had to show for it was a lawsuit against them by each credit card company.

Sure, sometimes you send enough money that they can make a deal to reduce your debt.

Then, you get a 1099 income tax form for forgiveness of debt income.

Get your financial information in order and check with a lawyer before falling for one of these scams.

Chapter 7 Bankruptcy, or Debt Settlement?

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“Don’t ruin your credit by filing bankruptcy!”

“The secret the credit card companies don’t want you to know!”

“If you owe at least $10,000 in credit card debt, you are eligible for our program!”

“Recent changes in federal law require credit card companies bailed out by the federal government to settle their debts with you!”

Hey, when something sounds too good to be true, it is.

Most recently, the Minnesota Attorney General sued six of these debt settlement outfits

My position has always been, bankruptcy is a last resort.

Let me share some of the pitfalls my clients have hit with these miracle programs.

First, this is how they operate.

They are usually not located in the state you are in, so they are hard to chase for refunds or misconduct.

Their ads and websites and phone calls trumpet their success, but the contract you sign guarantees nothing.

You send them money, usually taken right out of your bank account, and they do not even talk to your creditors until they have a certain amount from you.

It may take months, years, before they have enough from you, after deducting their fees, of course, to even answer their phone when your creditor calls.

And, the creditors do not call often, they just sue you, garnish your wages in states that allow it, like Michigan.

Of course, you are behind on paying the credit cards, because you are sending what you have left every month to the friendly debt settlement company.

And/or, they told you, stop paying the credit cards.

So, your credit report is taking the hit for being in default, the hustler/con man debt settlement company has your money, and you have no relief.

In fact, you are getting harassed more than before you hired them.

I represented one couple, in their 80s, who were so ashamed of their debt problems, they did not tell anyone.

Their kids were helping them out, and they hired two of these debt settlement scam outfits, to handle one credit card each.

After over six months of paying, all they had to show for it was a lawsuit against them by each credit card company.

Sure, sometimes you send enough money that they can make a deal to reduce your debt.

Then, you get a 1099 income tax form for forgiveness of debt income.

Get your financial information in order and check with a lawyer before falling for one of these scams.

Chapter 7 Bankruptcy, or Debt Settlement?

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