Failed Debt Settlement Programs and Scams

People often contact debt settlement or debt consolidation companies for assistance in getting rid of debt.  Other people contact credit repair specialists to help rebuild their credit.  If you have paid money to a debt settlement or consolidation company and they have not provided any real results, you may be entitled to get your money back. 

We can recover funds paid to a debt settlement, debt consolidation or credit repair company if they failed to meet the strict requirements under Michigan law, including a limiting fees charged, being properly licensed, and not meeting a requirement to perform all services in 90-days. Call us today to discuss your options to recover funds paid to one of these companies if you feel they have not lived up to the services they promised you. You do not need to file for bankruptcy to enjoy this potential recovery, but we are here to help if you still need of debt resolution.

At Acclaim Legal Services, our goal is not only to find a lasting solution to alleviating financial hardship and debt problems but also to ensure that all of your rights and protections are enforced.  Examples of other protected rights while filing for bankruptcy are:

• Elimination of harassing creditor calls and collection efforts;

• End to judgments and garnishments;

• Negative reports to the credit bureaus, etc.

In addition to these benefits, we can evaluate if you may be due a refund of fees paid to a debt settlement, debt consolidation or credit repair company.  Michigan is tightly regulated in this area and violators may be strictly liable, including the attorney fees incurred to recover the funds paid.  We are well versed in the Michigan Debt Management Act as well as the Credit Services Protection Act and can help you recover funds that you are entitled to. 

File Bankruptcy to Put a Legal End to Your Debt

You do not need to file bankruptcy to recover funds from a failed debt settlement, debt consolidation or credit repair plan.  We can still pursue a recovery outside of filing for bankruptcy.  However, we find that many people still need debt resolution assistance if their previous efforts with these other agencies have failed.  We help clients file Chapter 7 bankruptcy to eliminate unsecured debt obligations such as credit card debt, medical bills, utility bills, etc.  This is often referred to as a “fresh start” program because it provides immediate debt relief and an opportunity for improved credit.  We also assist in filing Chapter 13 bankruptcy reorganizations.  This is a court-authorized debt consolidation plan that provides broader protection and financial tools over a Chapter 7.  Under a Chapter 13 bankruptcy we can stop a foreclosure sale, prevent a vehicle repossession and deal with IRS tax liabilities and much more.

Consider Tax Consequences of Debt Resolution Options

Another benefit of filing bankruptcy is there are no tax consequences for the eliminated debt.   The United States Bankruptcy Code doesn’t allow the Internal Revenue Service to impute income for any debts forgiven under bankruptcy.  Hidden tax consequences are often present with the debt settlement or debt consolidation plans where “forgiven debt” is considered imputed income and could create an additional cost and tax liability for you.

Other ways to retrieve money expenditures on debt

If you are being garnished by a creditor, we can also assist in recovering any funds garnished by a creditor in excess of $600 taken within 90 days prior to filing a bankruptcy.  These funds are considered a “preference payment” to creditors garnishing you and we can guarantee the return of those funds if the amount is over $600 within that 90-day window.  We can also put an immediate end to any ongoing lawsuits or garnishments to ensure your paycheck or bank account stays intact.

Call today for a free consultation

The statute of limitations for recovering funds paid to a debt settlement/consolidation company is 4 years.  We can begin working today on your recovery.  Call us at 866-261-8282 for a free consultation discuss your options.