Watch Out for Debt Settlors

With the change of bankruptcy laws in 2005 came the increase in growth of debt consolidation or debt settlement firms. Their use has also grown with the recent recession. Consumers must be very careful, because many of these firms are of no help in getting you out of debt. Some make the situation worse. Still others take the money and run. The Federal Trade Commission has a very informative website dedicated to what you need to know: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre38.shtm
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm

I have seen it happen all too often, that a client or potential client has had multiple thousands of dollars go to a "debt consolidation," only to find out that the bills have gone unpaid, lawsuits are filed, wages garnished, credit destroyed. http://www.nytimes.com/2009/04/20/business/20settle.html?_r=1&hp

Sometimes debt settlement can work, but you must work with a reputable firm. Call me for legal advice before you jump.