How to Avoid Becoming the Victim of a Debt Relief Scam

Posted on January 23, 2014 at 2:18pm by

Our Kansas City Bankruptcy Lawyers Discuss Fraud After the Holidays

With the holiday season ending, many consumers are strapped for cash as the bills for the gifts, travel and decorations start to roll in. According to a survey by Deloitte, the total amount of holiday spending for 2013 increased by 12 percent over the amount of spending last year.

For individuals and families in good financial standing who spent a substantial amount of money during the holidays, these bills will more than likely be nothing but a memory by Valentine’s Day. However, those forced to spend frugally over the holidays are often the ones struggling to make ends meet well into the New Year. These folks are usually buried by several seasons of gaining debt, with Deloitte reporting that households making less than $100,000 had spend roughly $854 for the holidays this year. Many times, the pressures of their financial situations can be relieved through Chapter 7 or Chapter 13 bankruptcy, but that same pressure can also make them easy targets for debt relief scams.

What Are the Signs of a Debt Relief Scam?

While there are legitimate debt relief businesses, it can be difficult to distinguish between those businesses and the fraudulent ones. The Federal Trade Commission recently shut down two such fraudulent debt relief companies, Innovative Wealth Builders, Inc. (IWB) and Independent Resources Network Corp (IRN), but there are many more out there still in operation.

Consumers should exercise extreme caution and thoroughly research these types of organizations before signing up with them. Signs that a debt relief business is fraudulent include:

  • Promises to eliminate your unsecured debt
  • Guarantees it can stop all debt collection calls and lawsuits
  • Requires personal and financial information, such as your bank account and credit card numbers
  • Requires you to pay a fee, often a large, lump sum, before it will settle your debts
  • Requires you to give personal and financial information before sending you free information about its services
  • Requires you to agree to automatic monthly payments that are directly withdrawn from your bank account
  • Only attempts to deal with one creditor at a time, lengthening the time you need to pay for its services

If You Are Struggling with Debt, We Can Help

If you want to receive straightforward guidance about how to avoid or overcome debt relief scams, talk to a Kansas City bankruptcy attorney who you can trust to have you and your family’s best interest at heart. At The Sader Law Firm, we understand what you are going through and have the experience, knowledge and skills to help you find solutions for your financial problems.

Our attorneys take the time to learn about your individual situation and will give you the information you need to get your finances back on track, whether through bankruptcy or some other means. For more information about debt relief scams or free attorney advice about bankruptcy, contact our Kansas City bankruptcy lawyers at (816) 561 1818 today.

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