How Can I Protect Myself from Debt Relief Scams?

Debt is big business.  Companies and individuals use your debt as way for them to make money, but tend to leave you in further debt. Debt consolidation loans in Illinois, which compile all of your debt into one monthly payment, are often used in this manner.  These loans lure homeowners into using their houses as collateral to payoff unsecured debt—if you fail to make all of your payments or timely payments, you could lose your home.

The Illinois Attorney General recently reached a settlement agreement with a Chicago-based debt relief firm with nationwide operations.  The company, posing as a law firm, charged people who were struggling financially with expensive and illegal upfront fees for debt relief services that never materialized. The company agreed to pay $2.1 million in restitution to Illinois residents and further agreed not to solicit new customers in Illinois.

Unfortunately, there are many other debt scams in Chicago and Illinois.  The following are descriptions of how scammers typically operate:

Don’t let scammers put you further into debt.  If you are looking for debt solutions, contact DebtStoppers, Bankruptcy Law Firm. We help you through the means test process to determine if you qualify. Even if you fail the Chapter 7 means test, you may still qualify for bankruptcy under Chapter 13. DebtStoppers, Bankruptcy Law firm can help you determine which chapter will fit your needs.

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