Recently, folks who are currently in chapter 13 cases have received a document titled “Notification of Debt Relief and Loan Modification” from a company called First American Debt Solutions. The document goes on to state that “[o]ur records indicate that your Chapter 13 Bankruptcy case number 08-xxxxx-x-xxx has been dismissed. It is very important that you contact us in the next 24 to 48 hours to discuss the terms of your dismissal.”
Do not be fooled by this letter! This document is a solicitation for a debt settlement program. However, the people who have been receiving these documents are in active chapter 13 cases. Their cases have not been dismissed at all! If you are in an active chapter 13 case and have any question at all, contact your attorney. Typically, before a case is dismissed, you will be mailed a document called a “Motion to Dismiss” directed to you and to your attorney. Your case will not be dismissed without you being notified.
It is disturbing (but not surprising) that a company would stoop to such tactics to lure people into their clutches such as sending a letter containg blatantly false information. If that is the tactic used to get you to call, we can only wonder what type of “service” will be provided and at what cost.
With the economic crisis continuing and people rightfully concerned over financial issues, more and more companies are preying on people’s fears with false or overstated promises. Before you send any money or sign up for any program, be sure that you know what you are getting into. Remember, if it sounds too good to be true, it probably is.
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