By itself, debt is not always a bad thing. Sometimes, consumers have to assume debt in order to finance major purchases, such as a home or vehicle. At the same time, however, a person can become overwhelmed by their financial obligations, which may require debt relief.
Although there are numerous ways to unload tremendous debt, some options are better suited for a consumer’s situation than others. For example, the U.S. Department of Justice recently took action against a debt relief company based in Texas that took advantage of people looking for help.
The federal government is seeking financial damages from the debt relief company for failing to follow through with their promises. Apparently, the company said they would work with creditors on behalf of the consumers only after the individuals set up financial accounts with their own funds. In the end, the creditors were never paid and the money often was just filtered to the debt relief company.
When a person is looking for debt relief, they may feel inclined to take advantage of offers that purport to be fast and quick. Unfortunately, certain debt relief strategies simply don’t work as advertised, which is why it may be best to consult with a trustworthy legal professional to assess available, effective options.
Bankruptcy could be a reliable way for consumers to discharge debt without any surprises. Many people have been able to use the legal protection of bankruptcy to clear debt and find a new start. Yet, like any major financial decision, the choice to seek bankruptcy should be made thoughtfully and carefully.
Source: KGW News, “DOJ seeks $10M in damages from Texas debt-relief company,” Chris Willis, July 18, 2013