342 North Clarendon Avenue | Scottdale, Georgia 30079
  • Google +
  • Facebook
  • Linked In
  • Twitter
  • Rss Feed
  • Jeff Field & Associates
404.381.1278 Free Initial Consultation
Bankruptcy

About

Contact Us

Are you buried in debt? Are you constantly being harassed by creditors? Have you received a notice of foreclosure?

Filing for bankruptcy can help you put an end to all of these problems. At Jeff Field & Associates, our lawyers...

More

Bankruptcy Blog Post

Debt Relief and Counseling Scams

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 instituted a credit counseling requirement for debtors filing for bankruptcy protection. Credit counseling agencies sprang up quickly on the heels of this law to provide a service that was suddenly in hot demand. Many of these agencies jumped on the recession bandwagon to offer debt relief and consolidation services to debtors hurt by our sluggish economy. Whereas, legitimate nonprofit credit counseling services may offer benefits to some debtors, you may find yourself worse off even as you try to do the right thing.

Unfortunately some debt relief companies cannot follow through with their promises or, worse, are intentionally designed to scam vulnerable debtors who are trying to take control of overwhelming debts. According to the Georgia Department of Banking and Finance and the Federal Trade Commission (FTC), fraudsters use various scams to target distressed debtors, including:

  • Forming a sham nonprofit entity to circumvent telemarketing rules
  • Piling on hidden costs — including excessive sign-up fees and service charges
  • Accepting funds from you for your debt settlement and then failing to pay your creditors
  • Charging exorbitant rates to perform tasks that you could easily do yourself
  • Increasing your debt by charging you a percentage of your total debt or alleged savings
  • Urging you to make “voluntary” contributions

So before you accept the services of a debt relief agency, do your homework. Thoroughly investigate the credentials and legitimacy of the company before signing an agreement or giving its agent personal or financial information. Also, seek the advice of a lawyer who can advise you about whether debt consolidation makes sense in your situation and recommend the best approach to successfully accomplishing your debt management goals. If bankruptcy is right for you, your lawyer can guide you toward legitimate trustee-approved debt counseling agencies.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

In order to help you more quickly, please fill out the quick form and submit.

  • This field is for validation purposes and should be left unchanged.
Contact Form