I have had way too many people in financial distress come to me after they have been raked over the coals by some alleged debt relief scheme.

It might have been affiliating themselves with a company that promised to settle their debt with all their creditors at some huge reduction only to find that almost all of the monthly payment they made for the first 18 months went towards the company’s fees while no debt was settled and the individual’s credit was wrecked and their creditors were suing them left and right.

It might have been affiliating themselves with a company that promised to get them a mortgage loan modification if they only pay them $1,800 or $2,000 up front only to find that after they pay the company nobody returns their calls or answers their emails and upon calling their mortgage company they learn that the mortgage company has never heard from anyone on their behalf.

Or it might have been of their own doing by using all their savings and cashing in their retirement funds to the detriment of their family’s well-being trying to settle debt on their own because they have heard from creditors and debt settlement companies how badly their credit will be affected if they file bankruptcy.  Instead they have exhausted all of their resources to find that they still are being sued and harassed by the creditors they could not get to settle with them.

Anyone reading this article on a computer has the ability to prevent falling into any of the scenarios above.  The internet has so many sources to help you investigate your options that perhaps it is completely overwhelming.  But don’t despair.  I am going to give you some resources below that will help you decide which path to choose.

Debt Settlement and Loan Modification Companies

Perhaps you saw a banner ad on a website for a debt settlement or loan modification company and clicked on it.  Perhaps you saw a name of one on a billboard, a park bench, or in your local newspaper.  The information the company puts out there sounds too good to be true, or it empathizes with your situation and gives you hope.  Don’t stop there and sign up.  First, investigate the company.  This is very easy to do on your computer.

Getoutofdebt.org

One of the best resources I know on the internet that is likely to have information for you is getoutofdebt.org, a website by Steve Rhode, an extremely knowledgeable and compassionate debt counselor and so much more.  He describes his site as:

Free debt help and debt advice on how to get out of debt, getting out of debt consolidation scams, and inside information on the debt relief and debt help industry – Steve Rhode, The Get Out of Debt Guy

Chances are that Steve has an article about that particular company or one of his readers has written on the site about it.  This way you can get firsthand knowledge about the company and whether they are reputable.

Your State’s Attorney General Website

You can also look up your state’s or other states’ attorney general’s websites and read about certain companies or the debt help industry in general.  Often these sites have guidelines for consumers and reveal schemes that they should avoid.  You can find the Pennsylvania attorney general’s website here.

Google It

Just google it.  Just type the name of the company along with the word “Reviews”, press “Google Search” and see what comes up.  Again, it is very likely that someone who has used the company, whether they had a good or bad experience, has written about their experience with the company.

Free Consultation with a Bankruptcy Lawyer

If you really want to investigate your options, take advantage of going to see a bankruptcy lawyer in your area.  Most of them will offer you a free consultation.  Once you meet with one, perhaps you meet with another to get a second opinion.  After all, this is your life, and your finances dictate to a large extent how you live it, so you owe it to yourself and your family to perform due diligence before you make any move.

Unfortunately, not all bankruptcy attorneys are compassionate, experienced or necessarily ethical.  I have met with a number of individuals who come see me after they have met with one or two other attorneys and they have been told completely conflicting information.  This could be due to an attorney’s inexperience or perhaps greed.  You might meet one that only talks about your bankruptcy option and doesn’t explain why debt settlement or other options are not as desirable thus pressuring you to file bankruptcy.  Or you could meet one that says your only option is to file a Chapter 13 bankruptcy and doesn’t explain why a Chapter 7 will not work while failing to tell you or underplaying the fact that a Chapter 13 case will cost you more and pay them more.

You need to investigate your bankruptcy lawyer just like you need to investigate a debt settlement and loan modification company.  You might do this by asking friends or family if they know a particular attorney or if they can refer you to one they know.  You can also google the attorney’s name and see what comes up.  Many bankruptcy attorneys encourage their client’s to leave reviews on the internet so look for those – they could be on Google Places, Yelp, CitySearch, YellowPages, or numerous other sites and directories.  Review the attorney’s website and see what they say about themselves.

No matter what, do not rely on what any one source tells you – INVESTIGATE!

If you live in the Philadelphia area and would like a free no pressure consultation to help you investigation your options, please contact the bankruptcy lawyers at Coleman & Kempinski P.C., Kim Coleman and Ray Kempinski, at 267.519.0295 or info@colemankempinski.com.

Photo Credit:  bixentro

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