There are many many companies who have found a market for desperate people looking for help to solve their financial struggles. They may advertise as “Credit Counselor’s”, “Debt Counselors”, “Loan Consolidators”, with slogans like “Let us Settle your Debt for 75% Less”, “Let us Deal with your Creditors.” Please, please, please use extreme caution when looking for help. These firms are not licensed and not regulated to do this (they may have a business license) and have no jurisdiction or legislative authority to deal with your debt. They are simply looking for a way to make a good living off of desperate people who can least afford to lose more money. Often they will set up a payment plan for you while they presume to work with your creditors to sort out your debts. After many months or in some case years of making payments to them and your creditors continuing to hassle you, these companies will admit they haven’t been able to work out an agreement with your creditors and, “ oh by the way, all your payments are going towards our fees”. In other cases they may simply charge you an exorbitant fee to refer you to a Licensed Trustee. YOU DO NOT NEED A REFERRAL TO SEE A LICENSED TRUSTEE.
Remember, these people have no legal jurisdiction or authority to deal with your debt and creditors have no obligation to deal with them. They have simply found a niche in the marketplace to make money. They come and go and change names as quickly as other fly by night companies in other industries. As always buyer beware! Check with your local Better Business Bureau.
Government programs have been put in place to help you and there is help available, just make sure you are seeking out the experts who are educated, licensed and available to you. Look for “Licensed Trustee in Bankruptcy” anytime you need financial help even if Bankruptcy is not something you are considering. A Insolvency Trustee does more than Bankruptcy.
The key here is that these are Federal Government programs that are administered by a Licensed Trustee in Insolvency. These are highly educated, highly regulated, licensed individuals or firms trained to help you. Any Trustee from East coast to West coast must follow the guidelines set out by the government. This is a national program and a legal process and the ONLY true process that can help you.