West Palm Beach Bankruptcy Lawyer
Debt Negotiation Scams
A person trying to get out of debt will have no difficulty finding many companies promising to reduce his or her payments, negotiate with creditors, and solve his or her financial problems. While some people have found success with debt negotiation companies, all too many of them are merely trying to take advantage of people in desperate situations. Some of these companies are simply not good at what they do, while others intend to simply take clients’ money and abandon them.
Here are some important warning signs to look out in debt negotiation companies:
- Complaints from former clients. The Better Business Bureau, state Attorney Generals, and consumer advocate agencies all have information about debt management businesses. If a business has numerous complaints, or is not registered with these agencies at all, do not hire that business.
- “No need” for written documents. Do not make any business arrangements over the phone or based on nothing but a handshake. Every agreement you make with any business should be printed out and signed by all parties.
- Advice to stop making payments. Many debt negotiation companies assure clients that they will only need to pay the company, not their creditors. The truth is that with every payment you miss your credit score is damaged. Do not trust a company that tells you to stop making payments unless they begin paying your creditors immediately.
Contact a West Palm Beach Bankruptcy Lawyer
Debt negotiation or management is not the right solution for everyone. If you think bankruptcy may be the best choice for you, learn about your options by contacting West Palm Beach bankruptcy lawyer Eric Klein at 561-353-2800.
