Will they help you?
You have no doubt heard or seen an advertisement telling you about a special plan that the "credit card companies don't want you to know about". They claim that they can settle your debt for pennies on the dollar and save your credit score.
Is this too good to be true? Do they actually work? Many of our Bankruptcy clients have tried a Debt-Settlement company. After paying hundreds or thousands of dollars to these so called Debt-Settlement Companies, they receive an unwanted surprise in the form of a Law Suit from one or more of their creditors.
Most Debt-Settlement Companies take all of their fees up front. They will take your money each month and will only start to negotiate with your creditors once they think they have enough money to negotiate a lower pay off.
If they are successful in negotiating a lower payoff, you may end up with another surprise in the form of a 1099 for Debt Relief Income. You may very well owe income taxes on the difference between what you owed to the creditor and what they were paid.
If you are in financial trouble please be sure to explore all your debt relief options before signing with a so called Debt-Settlement Company.
Generally speaking, most people are better off either filing Chapter 7 or a Chapter 13 Bankruptcy in the first place rather than using the services of a debt relief agency. Further, the individual's credit rating is no worse, and in many instances is better off after filing bankruptcy.
Contact us to speak with an attorney at our firm about Bankruptcy questions or current financial situation. We offer a free initial phone consultation. Payment options are also available.
CRISTIANO & LILLARD | |
41707 Winchester Road, Suite 205 | 750 Terrado Plaza, Suite 241 |
Telephone: 951-296-0053 | Telephone: 626-859-1011 |
