Should You Use A Debt Settlement Company? Be Aware! Be Very Aware!

by Adrian Lapas, Esq.

November 4, 2013

I was in court this morning and saw two different consumer debtors attempting to navigate a collections action.  They had been sued by a credit card company after they had sought help from a debt settlement company.  The debtors had been sued even after having been assured by the debt settlement company that it would assist the debtors somewhat with the creditors.  Of course, the only thing the debt settlement company provided by way of assistance was some worthless “cut and paste” pleadings that made no sense and actually violate the prohibition on practicing law without a license.  Needless to say, the debtors found themselves in court having to explain things before the judge by themselves.

We here at Bankruptcy Law Network have written extensively about debt settlement companies.  We do not like them!  In fact, North Carolina’s Attorney General has sued debt settlement companies in the past.  Just recently, the N.C. Attorney General has sued another debt settlement company for engaging in the unauthorized practice of law.  Other entities have had similar experience with one debt settlement firm in particular.  But, the fact that people still sign up for these “services” raises the question why do people believe the junk they are selling?

I think the real reason is twofold.  First, people generally want to pay their debts and they reason that payment of some of the debt is better than none at all.  The second reason is fear of bankruptcy.  People are afraid of losing property and of the damage to their credit.  While these are legitimate concerns, it does not explain why folks do not seek out a competent professional to advise on financial issues yet they fall hook, line and sinker for some fast-talking snake oil salesman over the telephone.snake oil

If you are facing financial issues, seek out a bankruptcy attorney in your area such as the ones on this site.  Just because you seek advice, it does not commit you to filing bankruptcy.  But, because we are all experienced in all aspects of the debt collection process and alternatives including bankruptcy, we can offer you meaningful solutions to your financial problems.

 

 

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Adrian Lapas, Esq.

I've been practicing bankruptcy law in North Carolina since 1993, and am certified as a specialist in consumer bankruptcy law by the North Carolina State Bar.

Last modified: November 4, 2013