Did You Pay a Debt Relief or Debt Settlement Company in Michigan — and Still End Up Filing Bankruptcy?

You may be entitled to a refund, and we can help you recover it.

If you’ve ever paid a debt settlement, debt consolidation, or credit repair company hoping for relief — only to end up more overwhelmed and still needing to file bankruptcy — you’re not alone. These programs often promise quick relief but rarely solve the problem. Worse yet, many Michigan residents end up deeper in debt, being sued, or having no choice but to file Chapter 13 or Chapter 7 bankruptcy.

 At Acclaim Legal Services, we hear this story often. And what many people don’t realize is:
There may be a legal way to get your money back.

And if you're still considering bankruptcy, it’s important to know your options before signing up for another debt relief program.

Call us today for a free consultation at (866) 261-8282. Attorney Michael Brown is our lead attorney for pursuing these scams and has retrieved tens of thousands of dollars back for our clients over the years. Michael is an expert in this area of law and is unrelenting in his pursuant companies that don't meet the standard of Michigan law.

The Truth About Debt Settlement and Credit Repair Companies

Debt relief companies often paint a hopeful picture. They promise to lower your monthly payments, stop the calls, or settle your debts for less than you owe.

But here’s the reality:

• Clients pay thousands in fees,

• Their accounts continue to go unpaid,

• They get sued by creditors,

• And ultimately, they still have to file Chapter 13 or Chapter 7 bankruptcy.

Debt settlement and credit repair companies in Michigan must follow strict consumer protection laws — but many don’t. When they break the rules, consumers may be entitled to a refund or damages under state and/or bankruptcy laws.

If this sounds like your experience, you may have a legal claim against the company — and we can help identify and pursue it as part of your bankruptcy process.  If you’ve worked with a debt settlement or consolidation company in the past few years, you may have a legal claim to recover those payments — even if the bankruptcy has already been filed.

Michigan Law Offers Strong Consumer Protections Against Debt Relief Scams

Michigan has strict laws that govern how these companies operate. If they didn’t follow the rules, you have rights.

Under the Michigan Debt Management Act (DMA):

• Debt management companies must be licensed by the state.

• They’re only allowed to charge a $50 initial fee.

• Ongoing fees can’t exceed 15% of the debt amount they handle.

MCL 451.414, MCL 451.423, MCL 451.428

If a company charged you more — or wasn’t licensed — we may be able to pursue a refund, especially if you later filed bankruptcy after debt consolidation failed.

Under the Credit Services Protection Act (CSPA):

• Credit repair services must be fully completed within 90 days.

• If they violate the law, you can recover at least the amount you paid, along with attorney fees and court costs.

MCL 445.1823(f), MCL 445.1824(1)(c)

The truth is: many companies simply do not comply. And most don’t want to fight these cases in court, which gives us an opportunity to negotiate on your behalf.

Real Clients. Real Money Lost.

You’re not alone. Based on national and state complaints:

• Many consumers report paying $10,000 or more to debt relief companies before they realized the program wasn’t working.

• The Consumer Financial Protection Bureau (CFPB) has returned over $19 billion to consumers harmed by abusive financial companies.

• Thousands of complaints have been filed with the FTC, BBB, and Michigan Attorney General’s Office over debt relief scams and unlawful fees.

Some clients didn’t even realize they had a legal claim until we uncovered it during their bankruptcy case.

Feedback from Our Clients….

Meeting with Michael Brown twice, he was professional, knowledgeable and extremely interested in my best interest. Giovanna was just as helpful and just as considerate. Thank you Acclaim Legal Services! ~ Caudia S.

Awesome experience! Michael and Deanna are beyond phenomenal! They are professional, knowledgeable, responsive and attentive, and they go above and beyond. I would recommend them 10 times over! ~ Douglas R.

What Happens When These Companies Don’t Deliver

If you’ve paid a debt settlement or consolidation company and then had to file for bankruptcy, the money you paid them may be considered a fraudulent transfer — especially if:

• You got sued anyway

• You still had to file bankruptcy

• You didn’t receive the promised services

This could allow your bankruptcy attorney to recover the funds under state or federal law. This applies to:

• Chapter 13 bankruptcy (during your case)

• Chapter 7 bankruptcy  (if the trustee abandons the claim and we pursue it afterward)

If you're considering bankruptcy after debt settlement failed, this is exactly the kind of issue we help clients navigate every day and we are here to help you.

How We Identify and Protect Your Claim

At Acclaim Legal Services, we’ve made this part of our standard intake process:

• We ask about any prior debt relief programs — not just within the past year.

• We help you gather contracts, payment records, and communications.

• We properly disclose the issue in your bankruptcy paperwork so your rights are preserved.

• We explore recovery options during your case or even after discharge, depending on the circumstances.

Whether you’re just now filing or already completed your case, we can still evaluate the issue. Michigan gives us 4 to 6 years to pursue these claims.

“I Thought I Was Doing the Right Thing…”

That’s the phrase we hear most often from clients who tried debt settlement first.

And we get it — you were trying to avoid bankruptcy, trying to get ahead. But if the program didn’t deliver on its promises, and especially if it left you worse off, you shouldn’t have to carry that burden alone.

We’re here to listen, not judge — and to offer solutions grounded in real legal protections. Because you deserve real help, not just broken promises.

Wondering If This Applies to You?

Here are some signs that you may have a claim:

• You paid upfront fees to a debt relief or credit repair company

• You were still sued by creditors

• The company didn’t resolve your debts in full

• You had to file for bankruptcy anyway

• You never received a refund for services that weren’t completed

Trust the Team at Acclaim Legal Services

If you’ve worked with a debt relief company and still need bankruptcy help, let’s make sure you’re not leaving money on the table.

• Already working with us? Let your attorney or paralegal know about any debt relief services you’ve used, even if you’ve already filed.
• Not yet a client? Schedule a free consultation. We’ll walk you through your options, help review any contracts or payments, and explore whether a refund is possible.

At Acclaim Legal Services, we have over 120 years of combined legal experience in bankruptcy law and debt settlement.  We have an A+ rating with the Better Business Bureau and many of our client’s great experiences with our team are highlighted on Google and other review websites.  At Acclaim we believe that everyone deserves honest, experienced legal support from a team that’s here to help you move forward — simply put, we are focused on your fresh start.  If you think we can help, please reach out to us today at 866-261-8282 to connect with Attorney Michael Brown or one of our other team members for a free, confidential consultation.  

Take the first step toward peace of mind.

We’ll connect you with a debt relief attorney for a free, no-pressure consultation.