What Is A Debt Relief Agency?
By Andy Miofsky, Illinois Bankruptcy Attorney on Jan 30, 2007 in General Bankruptcy Information, Illinois
The term “debt relief agency” appears in a legal context for the first time in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 [The Act]. The first chapter of this new bankruptcy law can be found at Title 11 U.S.C. 101. This is the General Provisions chapter and it contains definitions of words of art used throughout the Act.
Section 101(12A) defines the term “debt relief agency” to be “any person who provides any bankruptcy assistance to an assisted person in return for the payment of money or other valuable consideration, or who is a bankruptcy petition preparer under section 110.”
Although the phrase contains the word “agency” the definition clearly refers to any “person”. You may see media advertisements where a person refers to oneself as an agency. While that appears to be grammatically incorrect, it is in keeping with the legal definition set forth in the new law.
An important note, the same section excludes certain types of persons or organizations from being a debt relief agency. For further information, see the blog post, “Exceptions To Being A Debt Relief Agency.”
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