… an article in the Star-Telegram, the Better Business Bureau is warning consumers away from using debt settlement companies, which often worsen their financial condition and fail to deliver on their promises.

The article said:

“The Better Business Bureau at Fort Worth has just completed a report on debt settlement businesses and warns consumers that seeking their help is rarely a good idea. Debt settlement usually adds to the consumer’s debt load and rarely leads to a significant …

Category: Bankruptcy , Debt Consolidation , Economy

Tags: Bankruptcy Better Business Bureau Debt settlement Financial services

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… and many experts expect that number to increase in 2010. Many Americans who are struggling with debt woes, foreclosure and other financial issues delay bankruptcy.  Too many of them turn to questionable debt settlement firms who charge the exorbitant fees while failing to deliver on their promises. The truth about debt settlement is…

Debt settlement firms claim to have the power to negotiate your debt balance; but the truth is that they have no legal authority to force …

Tags: Bankruptcy Debt settlement Financial services

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Debtor’s can’t afford the payment(s).  The number one reason most debt settlement schemes don’t work is because the debtor cannot afford the payment(s).  Most debt settlement schemes require large upfront payments to the debt settlement firm which will be redirected to the creditor (minus the debt settlement firm’s fees). However, most debtors are severely cash strapped and can’t afford to pay.

The debt settlement firm is often …

Tags: Debt Debt settlement IRS Taxes

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Given today’s economy, many debt settlement companies are waiting to take advantage of you.

An article in the USA Today warns that people should make sure they are not being taken advantage of by debt settlement companies.  Many people are struggling financially right now, and there are companies and individuals trying to profit from others misfortunes.

A prime example of this came to the forefront in Florida last …

Category: Debt and Tax Relief , Economy , Fort Worth Attorney

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With many Americans struggling to repay debt, advertisements for debt settlement companies are on the rise.  Many debt settlement companies claim that they can help debtors pay only a fraction of their debt and walk away debt-free.  “Pay only pennies on the dollar!,” they say.  Many debtors are under the false impression that debt settlement is like bankruptcy.  The truth is that debt settlement and bankruptcy are completely …

Category: Debt Consolidation

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According to an article in the Star-Telegram, debt settlement can often leave debtor’s worse off than they were before they attempted to settle the debt.

The article said:

Anybody buried in bills has seen the ads or received letters or calls from companies promising to settle credit card debt for 50 cents on the dollar. The pitch is that debt settlement is a better way out than credit counseling, debt consolidation or bankruptcy. But …

Category: Debt Consolidation

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… is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  What does a “discharge of debt” mean, exactly?

A:  The goal of bankruptcy proceedings is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  So what does “personal liability” mean, then?

A:  Having personal liability for a debt means that creditors who obtain a judgment against you can use legal means, …

Category: Bankruptcy Q&A , Debt and Tax Relief

Tags: Bankruptcy Questions Discharge of Debt

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… they can somehow settle their debts for pennies on the dollar like advertised on the late night debt settlement infomercials. But debt settlement is not as easy or pain free as the debt settlement merchants would have you believe. Let’s take a look at some of the hard-cold facts:

*If you want to use debt settlement, you need CASH. In plain English that means that if you want to settle a $4000 debt for $2500, you need $2500 available right now to hand to the creditor. Most creditors …

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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 …

Permalink: /bankruptcy/debt-relief-usa-inc-files-bankruptcy/

… the Dallas Morning News Attorney General Greg Abbott filed a lawsuit against two Dallas-area debt settlement companies and two out-of-state firms this week, accusing them of orchestrating fraudulent debt settlement schemes.

The article said:

According to the state’s lawsuits, the defendants unlawfully misrepresented and overstated the nature of their services…Court documents filed by the state claim that the defendants misrepresented the availability and consequences of …

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… debtors file for bankruptcy as a last ditch effort to dig themselves out of the hole when their debt troubles are just too much to handle. But often their last stop right before bankruptcy is debt settlement. There are a lot of companies out there that offer debtors the opportunity to settle their debts with creditors for "pennies on the dollar." Sound too good to be true? Well, many debtors coming to bankruptcy court after going through "debt settlement" have found …

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Many debtors are intimidated by debt collectors who often cast themselves as these all powerful entities who can wreck havoc on a debtor’s life.  But the truth of the matter is that debt collectors aren’t as powerful as they seem, it’s just that many debtors’ lack of knowledge about their rights and the limitations of debt collectors make them vulnerable to debt collector tall tales.  Here are a couple myths and …

Category: Debt Collectors , Economy , Managing Your Finances

Tags: Debt Collectors facts Myths threatening

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