Leading Financial and Family Law Attorneys
Avoiding Debt Consolidation & Settlement Scams
Don’t Fall for Debt Consolidation or Debt Settlement Scams!
Affordable Payment Plan!
Cut Your Payments In Half!
Eliminate 70% Of Your Debt!
In Most Cases Those Are Scams! Run Away!
Consumer Credit Counseling Service (CCCS)
Any approved reduction that a credit counseling or debt reduction agency receives is partly funded by a kind of “kick back” from the credit card company, or what they call a “fair share” agreement. Why do the credit card companies pay credit counseling or debt consolidation agencies to do this? Because they do not want you to file bankruptcy!
The credit card industry, of which many credit counseling agencies are typically a part, will try to scare consumers away from bankruptcy by overstating the negative consequences, and completely failing to discuss the benefits.
In fact, the IRS recently audited 63 credit counseling firms, and other audits are expected. Criminal investigations are also underway. The reasons for the audits and investigations are that the IRS takes the position that these firms are often profit-making entities, with fees benefiting executives or relatives of the firms, while doing little in the nature of benefiting consumers. The Federal Trade Commission warns consumers about the industry on the FTC website.
As bankruptcy lawyers, New Mexico Financial and Family Law often meets people after it is too late. Many people come to see our firm after they have spent sometimes thousands of dollars on a fraudulent payment plan; they then find that one or more creditors were not participating, and are suing the consumer. Facing garnishment, they come to see a bankruptcy lawyer.
Before considering any credit counseling or debt consolidation arrangement, consider these facts when comparing bankruptcy to a private company that promises to “avoid bankruptcy.”
- The results in bankruptcy are certain.
- The cost is reasonable.
- You can get a fresh start in three to four months in Chapter 7.
Although the bankruptcy is reported on your credit report for ten years, as soon as you receive your discharge you can start reestablishing your credit. Although not typical, high credit scores over 700 are possible in as little as two years after a bankruptcy discharge. In fact, if you are reading this, chances are bankruptcy would actually improve your credit score almost immediately by eliminating your credit card debt. After reestablishing good payment histories, good credit scores are very common.
Credit counseling agencies, or debt consolidation or similar companies, are part of a totally unregulated industry. The companies have virtually no power to enforce compliance with anyone. They can only obtain what each and every creditor will agree to. Further, if the firm is unscrupulous, as many are, they may not even tell you that a creditor is not participating with the procedure and is planning to file suit. Even if a reputable firm is able to acquire a payment plan, it will be reported on your credit report, and you may struggle for years to fulfill the arrangement.
If you want to try to avoid bankruptcy use CCCS… or risk being a victim of a scam. If it sounds too good to be true, it probably is. In most cases, bankruptcy is really the best option for honest people who have fallen on tough financial times.
New Mexico Financial and Family Law is an Albuquerque, New Mexico based bankruptcy law firm which provides United States Bankruptcy legal services and advice throughout the state. The majority of its clients reside in the Albuquerque, New Mexico, area, i.e., Albuquerque, Bernalillo, Rio Rancho, Los Lunas and Belen. But the firm can also represent clients statewide in Hobbs, Las Cruces, Clovis, Farmington and other New Mexico cities. Our firm represents clients who reside in New Mexico and also New Mexico residents residing in out-of-state jurisdictions. Bankruptcy law, as practiced by New Mexico Financial and Family Law, addresses all of a client’s concerns; legal, financial, and emotional. We attempt to settle bankruptcy cases through negotiation. If negotiation is unsuccessful then the trial skills of our attorneys are brought into play. Don Harris is a well-known and respected Albuquerque, New Mexico, lawyer. New Mexico Financial and Family Law not only provides the legal bankruptcy advice and guidance expected of experienced lawyers, we also work with other professionals such as financial advisors, CPAs and mental health counselors to provide the firm’s clients with many of the services needed to get through their financial and personal challenging times.
The hiring of a lawyer is an important decision that cannot be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.
Contact New Mexico Financial and Family Law Today for a Free Initial Bankruptcy Consultation!
Pursuant to 11 U.S.C. §528(A)(4) We are required to state the following: We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.