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Debt relief company puts grandmother in even more debt

For some Chattanooga residents struggling with mounting bills, help in any form is probably welcomed. However, accepting help from the wrong company offering debt relief may actually put the consumer in even more debt, as one grandmother recently found out.

The 67-year-old victim, whose only source of income is $763 a month from Social Security, says that the company offered unsolicited help to lower her credit card and store debt. She was told to stop paying her bills entirely and that if she paid the company $306 per month for 10 months, then the amount owed on her credit card bills and the interest rates charged would be lowered. However, that is not what happened and now she is about $16,000 in debt and in an even worse position than before. The company that allegedly helped her has been sued by the Federal Trade Commission.

For many facing financial challenges, a chance to eliminate debt may seem enticing. There are many companies out there that offer assistance, but one of the only ways to be sure to get a fresh start is to file for consumer bankruptcy. Whether the consumer chooses a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, filing for bankruptcy is one of the only ways to be sure that the debt is reduced or eliminated entirely. In many cases, filing bankruptcy may even improve the debtor's credit, either immediately or after two years.

Seeking out assistance with debt relief is a difficult process, especially for those who have severely reduced income. Seeking out reputable assistance, particularly from a lawyer, is often the best first step to a fresh start.

Source: WATE, "Debt relief company leaves Etowah grandmother even further in debt," Done Dare, Feb. 13, 2013

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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