Not All Debt Relief Companies Are Created Equal

 
I want to make it clear that I have nothing against "Debt Relief Agencies".  Under the right circumstances they perform a service that avoids bankruptcy for many people.  Some of these companies are honest, charge reasonable fees and have a staff that is well trained.  A good example is the YWCA here in El Paso, Texas.  Over the past six months it appears that the number of companies that offer debt relief by making deals with your creditors has increased substantially.  You see their ads on TV, hear their ads on the radio and read their ads in the newspaper.  Unfortunately many of these companies charge large up-front fees and provide no meaningful service to their customers.  The bankruptcy judge has expressed deep concern over these companies and has said that there has been at least one indictment and conviction in San Antonio, Texas.  He has asked the bankruptcy bar (lawyers) and the Office of the United States Trustee to gather as much information as possible with the idea in mind of turning the information over to the Department of Justice for prosecution.  However, as with most things in life, you must protect yourself.  Before hiring a debt relief company ask for references and check them out carefully.  Beware of any company that wants large up-front fees (read the fine print) before they will do anything on your behalf.  Most importantly, remember if it sounds too good to be true - it usual is.