I recently spoke with a client who was the victim of Debt Management Company Scare Tactics. After I met with this client and confirmed that the qualifies for Chapter 7, he went home and called his Debt Management Company and asked that they stop deducting money from his checking account because he was filing bankruptcy. The representative from the debt management company responded that my client could not file bankruptcy. When my client asked, “Why?”, the debt management company representative lied to my client by saying “that anyone who owns a house can’t file chapter 7.” The debt management company representative then asked my client, “Do you own a television?” My client answered, “Yes.” The debt management company representative then lied to my client again and told him that the could “kiss the television goodbye.” As you can imagine, my client was upset and disheartened after this conversation with the debt management company liar. Fortunately, my client called me and I was able to calm his fears and set the record straight.
By telling my client that he could not file for bankruptcy, the representative from the debt management company broke the law by engaging in the unauthorized practice of law. Some debt management companies will say just about anything to get your money. Don’t let some debt management company scare you away from exercising your rights. Meet with a real attorney and find out about your legal options to obtain real debt relief.
Here is the truth about debt management companies. Credit card companies are not legally stopped from suing you for collection of the debt. In contrast, Chapter 13 and Chapter 7 prevents credit card companies from suing you for collection. Debt management companies have no power to force any creditor to accept a lower payment from you. In contrast, a confirmed Chapter 13 plan payment or a Chapter 7 discharge is binding on all creditors listed in the case. With Chapter 13 and Chapter 7 we don’t need permission from your creditors.