Debt Settlement Ripoff
In my time working as a bankruptcy attorney and an attorney for creditors I have come to the conclusion that you need to check out your debt settlement company carefully before giving them your hard earned money. The reason being is often the companies promise to get people out of debt but do not deliver on that promise. Instead what happens is the debt settlement company is only interested in extracting exorbitant fees from their clients. The debt settlement companies actually make a bad situation worse by getting many of their clients sued by the creditors resulting in judgements and garnishments.I have talked to a number of clients and the fees charged by the debt settlement company ranged from 50% to 90% of the total monthly payment. In many cases the client would have been better off consulting with a bankruptcy attorney to determine if that would have been a better option. In many cases the fees charged by a bankruptcy attorney will be lower than the debt settlement fees. A good article discussing this is found at http://online.wsj.com/article/SB122394458494631223.html.
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