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Bankruptcy Protects Cleveland Woman After Debt Relief Company Fails To Get Results

Today, everyone experiences financial ups and downs and it’s unfortunate that when people are trying to sort out their financial issues, unscrupulous debt consolidation companies come out of the woodwork. Such was the case for a Cleveland woman, working as an administrative assistant. This woman owed approximately $40,000 to various credit card companies and found an on-line debt relief company, purporting to be a California law firm that could settle her unsecured credit card debt without the need for a bankruptcy filing. The prospect of eliminating her debt without going through bankruptcy greatly appealed to the woman; therefore, she retained this organization’s services. The company instructed her to stop paying her monthly credit card bills and advise the creditors that she’s working to settle the total debt. Ultimately, one of the creditors did not want to participate in the proposed settlement plan the company offered and filed suit against her for the full amount owed. The woman was shocked by the false promises made by the company and in a desperate state, she contacted Luftman, Heck & Associates to help her sort through these issues.

Attorney Matthew Alden worked with the woman and advised her that the company she hired and others like it make attractive claims, but it usually amounts to a lot of false and deceptive practices because after you pay their hefty fees, when someone tries to consolidate debt with several creditors without a federally protected bankruptcy, you run the risk of one of the creditors refusing to participate. When this happens, the creditor may garnish your wages or file a lawsuit to collect the money owed, which can have a more drastic impact on someone’s credit report than a properly executed bankruptcy. After dispelling the client’s misconceptions regarding bankruptcy, attorney Alden was able to assist the woman with an effective Chapter 7 Bankruptcy, which allowed her to settle her total debt for $10,000 and removed the fees incurred by the disreputable organization she initially hired.

Prior results do not guarantee a similar outcome in your case. Individual results may vary based on the facts, injuries, jurisdiction, venue, witnesses, parties, and other factors. The results and client testimonials provided are not necessarily representative of the results obtained by all clients or their satisfaction with the firm’s services.