In the video below put out by Morgan Drexen today and distributed with their press release (source), Walter Ledda, CEO says attorney assisted debt resolution is an alternative to debt settlement. Is it somehow magically different?
At 0:37 and you will hear Ledda make comments to advise consumers to avoid bankruptcy. “Bankruptcy is the last resort for consumers”, Ledda says.
At 0:59 into the video Ledda says, “Using a debt settlement which was an alternative to bankruptcy, now there is an alternative to debt settlement which is a non-formal Chapter 13 which is an attorney assisted debt resolution program.”
Let me give you that quote again, “Using a debt settlement which was an alternative to bankruptcy, now there is an alternative to debt settlement which is a non-formal Chapter 13 which is an attorney assisted debt resolution program.”
I have no clue how a program negotiated by an attorney to reduce debt is any different than a debt settlement program where a company negotiates with the creditor to reduce the debt owed. Can anyone help explain the difference, other than an attorney might be involved? And if an attorney is involved, so what?
Morgan Drexen describes their debt settlement service on their site by saying it is, “…an aggressive approach to debt reduction and is appropriate for consumers with a serious amount of debt or who are considering bankruptcy. Morgan Drexen provides access to debt settlement through integrated law firms that offer legal representation and negotiate with creditors to settle consumer debt for a lower amount than what is owed.” – Source
The video concerns me in the way it represents bankruptcy. The video seems to clearly attempt to dissuade consumers from bankruptcy as a solution to financial problems.
The Morgan Drexen video also does not state:
- that the bad credit from any settlement will appear on the credit report for seven years, the same length of time a Chapter 13 bankruptcy will;
- that bankruptcy is the only solution that can discharge debt quickly and for less expense than settling if the consumer can qualify for a Chapter 7 bankruptcy;
- does not have the potential tax consequences that settling the debt does;
- legally stops collection calls; and
- prevents lawsuits over the included debt.
Attorney Assisted Debt Resolution Program Said to Be Different Than Debt Settlement. How Can That Be? by Steve Rhode
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