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According to an article in the Dallas Morning News, Debt Relief USA Inc., filed for Chapter 11 bankruptcy this week and has ceased all operations. That’s bad new for debtors who were working with this company because they may not get all of their money back.
The article said:
“Debt Relief USA anticipates sending written instructions to its customers, most former customers, creditors and known potential creditors with instructions on any steps you need to take to protect your interests,” the company said on its Web site, www.drusabankruptcy.com… The bankruptcy filing won’t affect any debt settlements the company has reached with a client’s creditors, he said. On client deposits at Debt Relief, Armstrong said, “Our intention is to refund them as much as possible, but it’s subject to bankruptcy court approval.”
This company has $4.65 million in assets and $5 million in liabilities, a significant shortfall. Will debtors who trusted this company get their money back? Well, nothing is for sure; but it’s guaranteed that priority debts such as taxes will get paid first before non-priority debtors receive a dime. Customers who gave the debt settlement company their money in hopes that they would pay creditors on their behalf will be considered non-priority creditors by the bankruptcy court. But it is an incident such as this that reminds us why it is so important to move cautiously with debt settlement firms. Now that this company has filed bankruptcy a customer who has made deposits with them will end up embroiled in their bankruptcy while their debts pile up. It is a real possibility that debtors who made deposits with this bankrupt company may not receive any money back from them. To avoid being in this type of situation, it’s important to thoroughly research and vet any debt settlement or debt consolidation company before you part with your hard earned cash. See our blog entitled “Be Wary Of Debt Consolidation Scams” (http://www.allmandandlee.com/bankruptcy_blog/breaking-news/be-wary-of-debt-consolidation-scams/) and make sure you check out the financial health of a company before you do business with them. In these times where many companies are filing bankruptcy and closing shop, you can never be too careful.
If you have found yourself entangled in a deeper financial troubles because of a debt settlement firm and cannot pay your debts you may need to file bankruptcy. Contact a Dallas- Fort Worth bankruptcy attorney so that you can receive legal advice about how bankruptcy can help you.
July 4th, 2009 at 10:39 am
no comment. just mad.
July 8th, 2009 at 4:03 pm
Monies being held in reserve accounts for customers should not be part of the bankruptcy proceeding. The money in the customer reserve accounts belong to the customers, not DRUSA and should not be able to be used as part of bankruptcy settlement. Where’s the justice?
July 10th, 2009 at 8:02 am
Real nice, these people were already having troubles in the first place. Just kick em while they ars down! Your supposed to be helping them work through their debt not take their money and put them in debt worse. These people should be first priority! After all are you not already paid to help these people!
July 11th, 2009 at 9:03 pm
if they filed bankruptcy on june 24th, why did they take money out of my checking account on june 28th
July 13th, 2009 at 7:25 am
crooks is what they are an i want my money that they coned so im havin this put on the news plus more
July 14th, 2009 at 8:02 am
Any suggestions on what (if anything)we can do to try to get our money back?!?! They have over $3000 in MY account in MY name?! How can they possibly take money that is in MY name??
July 14th, 2009 at 9:31 am
We are so sorry. They clearly have taken money from so many innocent people. Like the gentleman whose story you read, we are filing bankruptcy cases for so many people who have poured their money down the drain with this company.
The irony is that many of you attempted to avoid filing bankruptcy by paying them sums of money only to see that money wasted. The irony is that the money you say you lost would have paid for a bankruptcy and would have eliminated the debt completely. Interestingly, most people see a swift increase in their credit score right after they file. It certainly would be worth your time to visit with us about that option as well as other options you might have. We are outraged at this company and others like it. That is why we are spreading the word so that others will not fall victim. Bankruptcy is a creation of federal law. Debt Relief USA is a creation of greed.
July 20th, 2009 at 12:46 pm
WOW!! Who is going to help them??…I just wish they would of been honest enough to not take customers money knowing that the bankruptcy was coming on. Thank you for your help while you were up and running…but SHAME on you for continuning to take customers money.
July 20th, 2009 at 8:41 pm
I am a victim of these crooks, how the law can help them get away with fraud is beyond belief, someone who knows the bankruptcy law and what they can do with it, in this case i think this was all part of the scheme, they lease a suite, hire unknowing employees to answer calls, and then they give it to the headhunter to close, telling you all they will do for you, If you look back and check your monthly statement you see settlement account fees for accts not settled, not til almost a year goes by before they say you have any $ in an escrow acct,(it all goes into one big acct). so now they already have pocketed most of your money and the assets they show is what is leftover. So now they show they don’t have enough to pay us back, They need to pay for that 70,000 Mercedes and all of the business credit cards they used for personnel use, attorneys, and lawsuits from a few of the States that “Attorneys who did their job” too bad the rest of the States or the Feds, did theirs!and all of the rest of the listed liabilities that our money is going to pay. Is this not the best place to live! Nothing but $$$ for them to take, While we worked our tales off. Are we going to let them do this? If someone has any Ideas I’m in! Although most of our Credit is now worthless, they still have alot of info on all of us, SSn’s, bank acct info. They may have other plans after this is over. Think about that!
July 24th, 2009 at 5:09 pm
It’s sad that the company is going under like the Titanic. By this I mean taking people down with it. But, what is really sad to me is the fact that people (Millions in the US) got so A$$ backwards with credit cards. to this day I feel The us of a would be better off with out credit cards.
August 1st, 2009 at 6:56 am
This is a damn shame!!! People work hard for there money they have over 8 thousand dollars of mine now your saying oh well to bad,no im sure there is away to get my money back and someone better come up with a solution why should certain people get there money back and not others dont make sense..And thats right if they had filed bankruptcy on the 24th how are they allowed to take money from people on the 28th now something is definitley wrong with this picture and they cant get there money back that’s a bunch of bull####….
September 8th, 2009 at 1:40 pm
The worse case is this. This is my 2nd time getting burned.. I’m still waiting on the first one from Legal Debt Center in Flordia.
Now they say maybe by Dec it will be closed.. look at all the interest the Atty General or flordia has made on my money.
Advertise on TV and than file bankruptcy.. If it was of interest to the law makers or Congress it would be fixed but they don’t have any money problems. Bail us out Give us back our money. Take all their money throw them in jail and throw away the keys. Enough said never will happen, Never vote a crook in office or someone not interested in our needs..