Is Debt Settlement A Scam
Debt Settlement is a scam to most who participate. This statement has been documented by New York officials who subpoena records of one large prominent debt settlement company. They found that approximately 1% of all those who joined this debt settlement company over a 5 year period had their debt settled the other 99% either were sued, dropped out of the program or still pending files. Click Here for Details
So WHY do so many people fall for this scam ?
The main answer is that most people do not understand what happens to them one their accounts go into default. What does default mean ? Default is when you haven't paid your credit bills for 4 to 6 months. So what happens once I am in default ? Once your accounts are considered in default in most cases the creditor then sues you to obtain a judgment. Once a judgment is entered by the court there is no debt settlement. Now the judgment holder can seize funds out of bank accounts, garnish wages and/or use whatever methods state law allows for to satisfy the judgment amount. The judgment can and in most cases includes court costs, attorney fees, late fees, penalties, over the limit fees, interest charges and any other charges allowed by the laws of that state.
The second reason is that they are lied to. If a company tells you to save money in an account or to stop paying your bills this is the BIG RED FLAG ! Get off the phone Immediately. Do NOT do business with any company telling you it is a good idea to default on your debt. Remember what your Mother told you " If it sounds too good to be true, it is too good to be true."
But the company I spoke with has a good rating.
They ???? This is part of the deception. If the company has more than 20 complaints with the BBB do not do business with them. Even though the BBB rating system is not accurate the amount of complaints are. This is an easy way to to determine if the company is honest.
I have already defaulted on my debt what can I do ?
In this case, you should contact at least 2 bankruptcy attorneys in your area. Have a consultation with them regarding what your options are legally. First time consultations with attorneys in most cases are free. So take advantage of their free advice.
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