This review is the result of a press release that was sent out by Libby Gill & Company to brag about Julian Debt Resolution. See Debt Settlement Company Says “If We Don’t Do Our Job We Shouldn’t Get Paid.”
525 NE Greenwood Ave,
Bend, Oregon 97701
Domain is owned by Robbie Diggs and was registered August 11, 2009. Odd that the company Julian Debt Resolution doesn’t own their own domain name. Red flag.
Debt Settlement company. But the also talk about credit repair and a forensic audit for mortgage issues. I guess these guys haven’t read all the warnings about companies that do forensic audits or credit repair. It’s almost like they’ve picked their product line based on the biggest scams around today. Red flag. – Source
They might want to read “Forensic Loan Audits and Foreclosure Rescue Companies are a Scam Says California Attorney General.”
Let’s just hope, fingers crossed they are not doing business in California as an unregistered DRE group.
Julian Debt Resolution Company, LLC was registered in Oregon on January 1, 2009. The managing members of the company at Tom Julian and James W. Smith. – Source
Julian Debt Resolution says it has “offices in Laguna Niguel, California and Colorado Springs, Colorado” but as of the date of this review California and Colorado show no registered business by the name Julian Debt Resolution or Julian Debt Resolution Company.
I had such high hopes for Julian Debt Resolution based on their press release I wrote about before Debt Settlement Company Says “If We Don’t Do Our Job We Shouldn’t Get Paid.” But unfortunately after looking at their site it is a wreck of misinformation that appears to be designed to sell people debt settlement, credit repair and forensic audits. Red Flags!!!
Let’s look at what they have to say about bankruptcy:
Bankruptcy laws in the United States changed drastically in 2005 and as such, bankruptcy should always be viewed as your last resort. In a Chapter 7 bankruptcy, you petition the court to erase all your debts completely. In return, you must turn over all your non-exempt property to the court-appointed trustee, who in turn sells your property to pay back your unsecured creditors. In a Chapter 13 bankruptcy, you set up a court approved plan to repay your debts. Under this plan, the court will determine your monthly disposable income. You must then pay that amount to a court appointed trustee who distributes it to your creditors for up to 5 years. Both of these options will negatively impact your credit scores not just while you’re in the program but for many years to come making it extremely difficult to obtain any new credit even after your debts are satisfied. Having a bankruptcy on your records can even prevent you from getting a job. For all of these reasons, it is in your best interest to avoid bankruptcy if at all possible. – Source
I’m hoping the people at Julian Debt Resolution are just uninformed because they are flat out wrong about bankruptcy and the message seems designed more to scare people away from bankruptcy towards debt settlement than talking about reality.
Debt Settlement only impacts your credit scores while you are in the program which is typically a lot less time than it takes to satisfy a bankruptcy judgment. When you are in a Debt Settlement or Debt Relief program, you can control the monthly payments and you decide how quickly you want to get out of debt. The only disadvantage is that Debt Settlement cannot reduce or eliminate debt you owe on secured assets like your house or car. But Debt Settlement is the best way to satisfy your debts and avoid bankruptcy. – Source
Let’s examine the two quoted sections above which constitute just a small portion of their web site.
- “bankruptcy should always be viewed as your last resort” – WRONG. Bankruptcy should always be assessed as an appropriate solution for all financial problems. As opposed to debt settlement, bankruptcy is a legally binding solution that protects consumers, ends collection activity and allows consumers to restart their lives quickly.
- “turn over all your non-exempt property to the court-appointed trustee, who in turn sells your property” – SCARE MESSAGE. Trustees rarely sell property in bankruptcy.
- “Under this plan, the court will determine your monthly disposable income” – MISLEADING. Yes, the courts setup a payment plan but that plan is based upon a reasonable repayment plan and during that plan consumers are protected from collection activity and lawsuits. At the end of the payment plan all their remain debt is forgiven without tax liability.
- “Both of these options will negatively impact your credit scores not just while you’re in the program but for many years to come making it extremely difficult to obtain any new credit even after your debts are satisfied.” – WRONG. It is easy to rebuild credit after bankruptcy and consumers that do can easily qualify for future credit, mortgages, and car loans.
- “Having a bankruptcy on your records can even prevent you from getting a job.” – MISLEADING SCARE MESSAGE. Very, very few people are ever prevented from a job because of bankruptcy. in fact, you can get a top secret security clearance with a bankruptcy history.
- “For all of these reasons, it is in your best interest to avoid bankruptcy if at all possible.” – WRONG. Bankruptcy is the only legal solution to address money troubles. Bankruptcy should be reviewed when facing debt problems and should not be avoided when it is the most logical and reasonable solution to address the issue.
- “Debt Settlement only impacts your credit scores while you are in the program which is typically a lot less time than it takes to satisfy a bankruptcy judgment.” – WRONG. When you begin the debt settlement process you are going to become delinquent on your debts. That will be reported for 7.5 years from the date first delinquent. Chapter 13 bankruptcy appears for 7 years and a Chapter 7 bankruptcy can be reported for 10. There is no such thing as a bankruptcy judgment.
- “When you are in a Debt Settlement or Debt Relief program, you can control the monthly payments and you decide how quickly you want to get out of debt.” – WHAT THEY DON’T SAY. They don’t tell you that is you don’t send payments to the creditors of at least the minimum contractual amount you will wind up in default, facing collections, risking being sued and having your wages garnished.
- “The only disadvantage is that Debt Settlement cannot reduce or eliminate debt you owe on secured assets like your house or car.” – WRONG. The big disadvantage is that your creditors will sue you for non-payment and attempt to put a lien on your property or garnish your wages. But they seem to fail to mention this.
- “But Debt Settlement is the best way to satisfy your debts and avoid bankruptcy.” – WRONG. The best ways would be to pay the debts in full, make above the minimum monthly payments, make at least the minimum monthly payment, debt management program or bankruptcy and then debt settlement. Debt settlement is among the least effective solution in resolving financial problems. Read The Truth About The Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.
I find it nothing short of hilarious that they continue to talk about bankruptcy, credit counseling and debt counseling quoting a Federal Trade Commission publication as an authoritative source to sell their debt settlement services but what they failed to include was the FTC warning in that publication about debt negotiation and debt settlement services. So let me include what they left out.
Debt Negotiation Programs
Debt negotiation differs greatly from credit counseling and DMPs. It can be very risky, and have a long term negative impact on your credit report and, in turn, your ability to get credit. That’s why many states have laws regulating debt negotiation companies and the services they offer. Contact your state Attorney General for more information.
Debt negotiation firms may claim they’re nonprofit. They also may claim that they can arrange for your unsecured debt — typically credit card debt — to be paid off for anywhere from 10 to 50 percent of the balance owed. For example, if you owe $10,000 on a credit card, a debt negotiation firm may claim it can arrange for you to pay it off with a lesser amount, say $4,000.
The firms often pitch their services as an alternative to bankruptcy. They may claim that using their services will have little or no negative impact on your ability to get credit in the future, or that any negative information can be removed from your credit report when you complete their debt negotiation program. The firms usually tell you to stop making payments to your creditors, and instead, send payments to the debt negotiation company. The firm may promise to hold your funds in a special account and pay your creditors on your behalf.
Just because a debt negotiation company describes itself as a “nonprofit” organization, there’s no guarantee that the services they offer are legitimate. There also is no guarantee that a creditor will accept partial payment of a legitimate debt. In fact, if you stop making payments on a credit card, late fees and interest usually are added to the debt each month. If you exceed your credit limit, additional fees and charges also can be added. This can cause your original debt to double or triple. What’s more, most debt negotiation companies charge consumers substantial fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee of a percentage of the money you’ve supposedly saved.
While creditors have no obligation to agree to negotiate the amount a consumer owes, they have a legal obligation to provide accurate information to the credit reporting agencies, including your failure to make monthly payments. That can result in a negative entry on your credit report. And in certain situations, creditors may have the right to sue you to recover the money you owe. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Finally, the Internal Revenue Service may consider any amount of forgiven debt to be taxable income. – Source
BBB Reviews & Ratings
There is no BBB record of a company named Julian Debt Resolution.
They are a new company so don’t have any as of the date I wrote this review but based on what I saw on their site, they’ll be coming.
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