Kentucky Bankruptcy Law

Counsel with Care

Read this before trying a debt settlement center:

The National Association of Consumer Bankruptcy Attorneys (NACBA) of whom I am a member has provided a great resource for folks struggling with debt and yet are trying to avoid bankruptcy. Here is an excerpt from the document attached here NACBA debt settlement trap consumer alert:

“Already struggling with home foreclosures, harsh bank and credit card fees, and other major financial challenges, America’s most deeply indebted consumers are now falling victim to a major new threat: so-called “debt settlement” schemes that promise to make clients “debt free” in a relatively short period of time. Unfortunately, most consumers who pursue debt settlement services find themselves facing not relief but even steeper financial losses.

Even the industry acknowledges – though not in its ever-present radio and online advertising–that debt settlement schemes fail to work for about two-thirds of clients. Federal and state officials put the debt-settlement success rate even lower – at about one in 10 cases – meaning that the vast majority of unwary and uninformed consumers end up with more red ink, not the promised debt-free outcome.”

I can tell you that a large percentage of my clients come in after trying a debt settlement service only to have thrown away scarce money.  So, I recommend you read this entire article before engaging a debt settlement center. There is only one reputable debt settlement center that I am aware of and they have an office here in Lexington, Ky.

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October 29, 2012 - Posted by | Bankruptcy, Chapter 13, Chapter 7, Debt solution centers | , , , , , , , , , ,

1 Comment »

  1. Interesting facts you have here. There is structured settlement information that can help in situations like this. Someone does not need to go into it blindly. Thanks for sharing, I really appreciate it.

    Comment by Toby Crane | December 10, 2012 | Reply


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