Category Archives: Debt Settlement

Federal Consumer Protection Agency Cracks Down on Debt Settlement Scam

In its first-ever criminal referral, the new Consumer Financial Protection Bureau, the federal consumer watchdog agency mandated by Dodd-Frank, has referred a case for criminal prosecution against a debt settlement company, Mission Settlement Agency. The indictment was filed in the U.S. District Court in Manhattan, charging that the debt settlement company’s manager and three employees […]

Also posted in Consumer Protection | Tagged , | Comments closed

The Ugly Truth About Debt Settlement Companies and Why Bankruptcy Is Often a Better Option

The National Association of Consumer Bankruptcy Attorneys (NACBA) recently published a consumer alert report entitled “The Debt Settlement Trap: The #1 Threat Facing Deeply Indebted Americans,” which detailed the stories of debt strapped consumers who have fallen prey to the numerous scams peddled by so-called debt settlement companies. You’ve probably heard their claims on TV […]

Also posted in Bankruptcy Basics, Consumer Protection | Tagged , , , | Comments closed

Unlike Bankruptcy, Private Debt Settlement Can Lead to Big Tax Problems

It’s another symptom of this prolonged recession. Private debt settlement companies are cropping up like mushrooms all over the Bay Area. Their advertisements urge people not to consider filing bankruptcy and promise that they can negotiate settlements with your creditors instead. In general these debt settlement outfits are not attorneys, and they cannot offer any […]

Also posted in Bankruptcy and Taxes, Bankruptcy Discharge, Bankruptcy in General | Tagged , , , , , | Comments closed

Debt Settlement Programs Don’t Keep Credit Card Companies from Suing You

Once or twice a week, I meet with a prospective bankruptcy client who has called us, frantic, because a credit card company or some third party collection bullies for a credit card company have served her with a lawsuit summons. “I don’t understand why they would sue me,” the debtor will complain. “I’ve been paying […]

Also posted in Bankruptcy Basics, Bankruptcy Discharge, Chapter 7 Bankruptcy, Credit Card Debt | Tagged , , , , | Comments closed