According to an article in 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 …

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According to an article in the Star-Telegram, Texas Attorney General Greg Abbott is filing a lawsuit against JK Harris & Co. accusing the South Carolina-based company of misrepresenting its ability to help consumers resolve unpaid tax debts.

The article said: A lawsuit contends that JK Harris & Co. misstated employees’ expertise, overstated its ability to clear up debts to the Internal Revenue Service and accepted large upfront fees knowing it could not reduce customers’ …

Permalink: /breaking-news/tax-scam-lawsuit/

… of Tekippe, Joseph W. and Jamie L.; In re, a bankruptcy trustee auctioned off the debtors’ lawsuit against the state of Iowa against the wishes of the debtors. The debtors who flied for Chapter 7 bankruptcy listed their interest in a pending lawsuit against the State of Iowa as an asset. The bankruptcy trustee determined that the lawsuit was the debtors’ only valuable asset; but the debtors did not claim the interest as exempt property. The bankruptcy court gave the trustee the …

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AmeriDebt Inc was the first credit counseling company to have a federal lawsuit filed against it.   It was the FTC’s largest case involving deceptive credit counseling and debt management.

In November 2003, the Federal Trade Commission (FTC) charged AmeriDebt, DebtWorks Inc and Andris Pukke, the founder of the two companies had deceived consumers with claims that AmeriDebt was a nonprofit organization and that it provided counseling services to consumers …

Tags: bankruptcy lawsuit Credit Counseling

… The details of the bankruptcy case:

In February 2006, the debtor filed a discrimination lawsuit against his employer and supervisor alleging that they reduced his sales territory as an insurance field agent because of his age.   Afterwards, the debtor received a COBRA notice from his employer stating that both his employment and his family’s health insurance were being terminated retroactively to November 1, 2005.  In response, the debtor added the insurance carrier to the …

Tags: Chapter 13 Bankruptcy discrimination Lawsuit

… seize your bank account before you file bankruptcy?  Has a creditor already filed a lawsuit against you and won a judgment?  If so, you are in imminent danger of a bank offset taking place before you file bankruptcy.  Remember, judgments can give creditors extra collection power to garnish you wages or seize certain assets such as a bank account.  In this case you may also want to consider opening another bank account and keeping some cash on …

Tags: Bank account Bankruptcy Checking Creditors Lawsuit

Filing a lawsuit against a debtor is not a creditor’s first choice.  A lawsuit usually comes after many months and sometimes years of chasing after a non-paying debtor. Creditors know that even if they file a lawsuit, it can be quickly neutralized with bankruptcy.

When a debtor fails to respond to a creditor lawsuit, the creditor will win a “default judgment” which will …

Tags: Creditor Judgement Lawsuit wage garnishment

… sentenced to nearly three years in prison.

The article said:

“Hardy filed a personal injury lawsuit in 2001 against GE Modular Space Transport International Pool Corp. She filed for bankruptcy before the settlement. Authorities say she hid proceeds from the lawsuit. Hardy was also ordered to pay $50,000 in restitution. She was convicted of the charges on April 17.”

When a debtor files bankruptcy with a pending lawsuit, that lawsuit must be disclosed to the bankruptcy trustee. If a …

Tags: Bankruptcy Debtor Fraud Lawsuit

… .  Many just want to know whether filing for bankruptcy means they can stave off a costly lawsuit.  Unfortunately, there is no black and white answer.  Instead, consumers have to answer questions about their own individual case.

1.  Should I answer the complaint?

It’s a good idea.  The law typically presumes that if you don’t answer the complaint brought against you, you’re agreeing with the arguments in the lawsuit.  If nothing else, defendants can request …

Tags: bankruptcy law Creditor Lawsuit

… While bankruptcy’s automatic stay prohibits the holder of the mechanic’s lien from filing a lawsuit or filing a foreclosure, Section 546(b)  of the bankruptcy code allows the mechanic’s lien holder to file a “notice of perfection of lien” with the bankruptcy court as an alternative to filing an action to foreclose, provided that the notice is filed within 90 days after the lien is recorded. Also the mechanics’ lien holder must file a proof of claim with the bankruptcy court …

… when you delay filing bankruptcy or paying off debt, you give your creditors more time to file a lawsuit, garnish your wages or take other aggressive collections actions against you.

Get professional advice.  None of us know everything and that is especially true when it comes to debt issues.  So take the time and energy to consult a professional about your debt troubles.  A professional bankruptcy attorney can help you figure out if bankruptcy is a good choice for you financial …

… you and gain access to the dreaded “wage garnishment” tool.

Instead of ignoring a creditor lawsuit, it would be wise to either respond to the lawsuit with the help of an attorney or to consider bankruptcy.  If you respond to the lawsuit, your response may delay a judgment against you and thus delay a wage garnishment.  However, if you actually owe the debt, a delay is best result you will get from this tactic.  Inability to pay is not a defense in a creditor lawsuit, that’s what …