Excerpt from Chapter 8 – “Should I Use a Debt Management Company or a Debt Relief Company to Handle My Debts?”

Bankruptcy – We Wrote the Book on It By Ronald C. Sykstus and the Bond and Botes Team of Lawyers

Excerpt from Chapter 8 – “Should I Use a Debt Management Company or a Debt Relief Company to Handle My Debts?”:

Should I Use a Debt Settlement Company?
By Attorney Bradford W. Botes

The ads on the radio always sound alluring. Simply respond by
calling a toll-free number and the debt settlement company will solve
all of your financial problems. But is the promised relief as good as
described?

Debt Settlement Process
The business model, or pitch, works something like this. You will
be instructed to stop paying on your credit cards and to instead make
payments to the debt settlement company. Often, the company will
want to deduct the money straight from your bank account. You are
told that the credit card companies will eventually give up and write the
debt off. They will then sell your debt to some third-party debt buyer
for pennies on the dollar. By that time, the debt settlement company
will have amassed enough of your money to settle the claims of the
credit card companies. They will pay everything off and your credit will
be perfect. The radio ad says that you will be able to buy a new house
and/or car in very little time.

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