Banking Law

Debt Settlement Companies - Unreliable, Unwise, and Now Bankrupt!

By Peter Orville, New York Consumer Attorney

Too many of my bankruptcy clients tried to avoid bankruptcy by working with a “Debt Settlement Company”.  Only after they paid out thousands of dollars, saw their credit scores plummet, and got served with lawsuits, did they come to see me about bankruptcy.  Much has been written about the dangers of working with Debt Settlement companies, most recently by my friend Jonathan Ginsberg in Atlanta at http://www.thebklawyer.com/thebkblog/2009/06/21/debt-settlement-vs-bankruptcy/.

Tuesday’s Dallas Morning News reported that a debt settlement company, Debt Relief USA Inc. has filed for Chapter 11 bankruptcy and has ceased operations.  Like many other debt settlement companies, Debt Relief USA was a target of several investigations by state attorneys general and federal authorities.

While the concept of debt settlement may have some merits, most of the companies that advertise their debt settlement services are to be avoided.  If you are tempted to seek out their help, do yourself a favor and first speak with an experienced bankruptcy lawyer to find out all of your options.

Full post as published by Debt Law Network on June 26, 2009 (boomark / email).