${site.data.firmName}${SEMFirmNameAlt}
East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Consumers need to be selective when seeking debt relief help

It is not uncommon for New Jersey consumers to find themselves overwhelmed with debts after unforeseen expenses, job losses or other causes. There is nothing wrong with seeking help with debt relief, but the companies from whom help is sought must be carefully scrutinized. The marketing of debt settlement companies can be misleading and often omits important information.

These companies promise to arrange settlements, and they require the consumers to stop paying creditors directly, but, rather, they tell them to put money into escrow accounts from which creditors will be paid once settlement agreements are reached. However, this allows debts to become delinquent and does not stop harassment by debt collectors. These companies sometimes fail to inform clients that they cannot prevent enforcements, such as wage garnishments, repossession and more, as there will not be an automatic stay as is ordered when a consumer files for bankruptcy.

Also, consumers may not be aware that debt settlement companies are not permitted to ask for any fees before debt settlement agreements have been negotiated. They may also neglect to inform the client of the other debt relief options, such as credit counseling, debt management and bankruptcy. Debt settlement companies often mislead clients by creating the impression that the company will provide legal counsel for them, and they may also falsely promise to settle all debts and to protect a consumer's credit score.

Sadly, trusting the wrong company to handle one's debt problems may lead to even bigger problems. An experienced New Jersey bankruptcy attorney may be the appropriate person with whom to discuss debt relief options that will provide the opportunity to regain financial stability. A skilled lawyer can explain the pros and cons of the various options, along with the protections offered to consumers by the U.S. Bankruptcy Code.

Source: marketwatch.com, "10 things debt-settlement companies won't tell you", Elizabeth O'Brien, Accessed on Aug. 19, 2016

No Comments

Leave a comment
Comment Information

PRACTICE AREA CATEGORIES

Tell Us About Your Case

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

PROFESSIONAL ASSOCIATIONS

  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

EAST ORANGE
OFFICE
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top