Debt Settlement Company Debt Relief USA Files Bankruptcy
 | By Steve Rhode Ask me your question. | Click on the star rating below to rate this article.
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Debt settlement company Debt Relief USA has filed bankruptcy in Texas following recent investigations and suits by the attorney general of several states.
The bankruptcy petition can be viewed here and shows the ownership of Debt Relief USA to be Kelly E. Reilly, Alvin B. Bell, and James F. Wojcik.
What will be significantly up in the air is going to be the disposition of payments made by consumers that have only gone towards fees by Debt Relief USA that may no longer be able to honor those commitments.
Gary A. Armstrong, the company’s attorney, said Debt Relief will not negotiate individual settlements and will not remove money from individual accounts pending the bankruptcy proceedings.
The bankruptcy filing won’t affect any debt settlements the company has reached with a client’s creditors, he said.
On client deposits at Debt Relief, Armstrong said, “Our intention is to refund them as much as possible, but it’s subject to bankruptcy court approval.” Source
Source: Debt Settlement Company Debt Relief USA Files Bankruptcy
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If I have an account that is now up in the air, what do I do. I was half through my program. Am I just out or am I going to get my money back.
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Steve Rhode Reply:
July 8th, 2009 at 11:34 am
Crystal,
It is unlikely that you will get all of your money back. You may get some money back as an unsecured creditor after the secured creditors are paid. You should receive a claim form or notice in the mail. If you have not you can always contact the Debt Relief USA lawyer and ask for the current status of the case and the refund policy.
Steve
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