Watch Out for Debt Settlement Scams

If you have listened to the radio, watched television or read any billboards lately – you're familiar with the so-called "debt settlement" or "credit management" companies that promise to fix your credit scores or drastically reduce the amount of debt you owe by negotiating with your creditors. All you have to do is pay them "a little money" up front.

Whether you've heard of these companies or not, you need to know that there are many scam artists offering debt settlement services to consumers right now.

At Prescott Pearson & Tande, PA, you'll find the answers you need to decide whether bankruptcy is right for you — and the experienced legal representation you'll need to make the most of bankruptcy's opportunity for meaningful debt relief. Our attorneys have handled over 70,000 bankruptcy cases in Minnesota. This is all we do, in fact, and it's what we've been doing as well as anyone for more than 40 years.

Non-Bankruptcy Alternatives

If you don't want to risk ending up in a deeper hole by working with a debt settlement company but don't want to file bankruptcy either – what are your alternatives?

If the main source of trouble is your mortgage, a deed in lieu of foreclosure or a loan modification might work. If the problem is simply too much debt and too many creditors, a debt consolidation loan might simplify your finances enough to regain control of them. Doing nothing is always an option too, but it's also usually the worst course of action.

The best non-bankruptcy option is usually to work with a nonprofit credit counseling service. However, if you decide to work with a credit counseling organization instead of filing bankruptcy, you should know that the services they provide will often damage your credit as much as a bankruptcy or any debt settlement service.

"This Is All We Do, and We Do It Well."

Contact Us for a Free Initial Consultation

  • Minneapolis-St. Paul Area: 651-968-8096
  • Minnesota Toll Free: 888-366-0827

For answers to any other questions about filing bankruptcy versus working with a credit counseling or debt settlement service — don't hesitate to call or contact our lawyers for a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.