When it comes to the chance to rob consumers of their hard-earned money, few industries are as attractive as that of debt relief. Individuals who are struggling under heavy debt loads will go to great lengths to ease that stress, up to and including signing up for questionable debt relief offers. Many of these consumers, in Maryland and elsewhere, are unaware that consumer bankruptcy offers a far more certain and stable path out of unmanageable debt.
One of the issues with debt relief lies in the fact that consumers who are unable to complete the process are often left in a worse financial scenario than when they started. Having paid hundreds and often even thousands of dollars to a debt relief agency, failure to complete the agreed-upon payment plan will leave one still mired in debt. By that point, the consumer has often depleted their available resources, and may have no emergency fund on which to fall back.
Even worse, scams are common within debt relief. Some of the agencies that claim to exist to help consumers emerge from debt are in fact focused on nothing more than gaining the highest possible profit. Such companies may collect monthly payments, but then fail to direct those funds to the proper creditors. By the time the consumer becomes aware of the situation, he or she is even further in debt and owes considerable late fees.
When searching for debt relief options, many in Maryland would be better served by filing consumer bankruptcy. In many ways, this is a much swifter and more secure path to debt relief than repayment schemes. In addition, individuals who work with an experienced bankruptcy attorney will avoid the risk that comes with signing on to a questionable debt relief offer.
Source: abcactionnews.com, “Not all debt management and credit repair customers have best interest at heart”, Lauren Rozyla, Aug. 7, 2015