Did you get a debt relief offer that seems too good to be true?

On Behalf of | Oct 4, 2021 | consumer fraud |

Sometimes all it takes is one life-changing even that causes your bills to start piling up unpaid. You may have suffered a serious illness leading to massive medical expenses. Or like many in 2020 and 2021, you may have been laid off and unable to find a new job in Will County that allows you to pay your bills.

So, when you see an ad on TV or online that claims it can wipe out your outstanding debt it may seem like the answer to all your problems. Some debt relief companies are legitimate enterprises that can help you become solvent. However, many of these debt relief offers are scams that will take your remaining funds and leave your debts untouched.

What are debt relief scams?

Debt relief scammers will say they can guarantee they can resolve your debts quickly and for little money. However, according to the Federal Trade Commission, these scammers will demand payment from you before they take any actions on your behalf. This is illegal. Legit debt relief companies can charge clients, but only after the debts have been settled.

Some debt relief scammers will simply take these fees and then ghost you. Some debt relief scammers will hang on, collecting more and more payments from you promising action all while you fall further into delinquency. Ultimately, these debt relief scammers will collect what little money you still have and leave you burdened with ever-growing debt that you cannot pay back.

You should weigh your options for debt relief

Debt relief scams should always be avoided. However, you will want to carefully consider whether a legitimate debt relief offer is right for you. Many legit debt relief firms order you to cease paying your debts, stating that this will force creditors into negotiations. However, creditors have no duty to settle outstanding debts out of court. And, during all the time the debt relief firm is negotiating on your behalf, the interest and penalties on your outstanding debt continues to grow.

In the end, you may find filing for bankruptcy is better than attempting to work with a debt relief company. Chapter 7 bankruptcy and Chapter 13 bankruptcy are good, viable ways to resolve your outstanding debt, leaving you free to move forward with a fresh financial start.