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Attorney Assisted Debt Resolution Program Said to Be Different Than Debt Settlement. How Can That Be?

By on August 18, 2010
Attorney Assisted Debt Resolution Program Said to Be Different Than Debt Settlement. How Can That Be?

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?

[flashvideo file=/wp-content/uploads/MorganDrexen.flv /]

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.


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READ  Credit Counseling, Credit Repair, Debt Settlement and Other Scams Are Target of FTC Sweep

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

13 Comments

  1. Steve Rhode

    February 16, 2011 at 2:31 pm

    I don’t sell any products or services. In fact I give away my ebooks for free. See my answer to Michael about the goals of this site.

  2. Jimmy

    February 16, 2011 at 2:02 pm

    Steve, the question is are you making money on bashing debt settlement companies and selling your do it yourself program???????????? Let me answer for you ah Yes you are. Interesting niche bash everyone else and sell your do it yourself model. I wonder if that’s ever been done before.

  3. Jimmy

    February 16, 2011 at 7:02 pm

    Steve, the question is are you making money on bashing debt settlement companies and selling your do it yourself program???????????? Let me answer for you ah Yes you are. Interesting niche bash everyone else and sell your do it yourself model. I wonder if that’s ever been done before.

    • Steve Rhode

      February 16, 2011 at 7:31 pm

      I don’t sell any products or services. In fact I give away my ebooks for free. See my answer to Michael about the goals of this site.

  4. David

    August 19, 2010 at 6:44 pm

    Everything in that video just seemed a bit confusing. EXCEPT for that hot blonde. Nothing confusing about that!

  5. Sean Ryan

    August 19, 2010 at 9:36 am

    FROM AMENDED TSR- FTC; Effective 09-27-10
    Definitions
    (m) Debt relief service means any program or service represented, directly or by implication,
    to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt
    between a person and one or more unsecured creditors or debt collectors, including, but
    not limited to, a reduction in the balance, interest rate, or fees owed by a person to an
    unsecured creditor or debt collector.

  6. Mike

    August 19, 2010 at 1:08 am

    Awesome Video
    Very TRUE
    Bankruptcy should be your last resort.

    • Steve Rhode

      August 19, 2010 at 12:08 pm

      Mike,

      Why should bankruptcy be your last resort?

      Steve

  7. joe debt

    August 18, 2010 at 5:44 pm

    So I don’t really have a comment either way on this article but I have read many of your articles. So Steve what is it exactly that you do and are you only using this website to make money off of other debt settlement companies that advertise on your site? My other other conclusion is that your business partner Damon Day and Associates just want people to pay that company for a do it yourself kit. I guess I’d just like to know how you make your money as you clearly just like to bash debt settlement companies no matter how good or bad their reputation is.

    • Steve Rhode

      August 18, 2010 at 6:03 pm

      That’s not true, I have praised debt settlement companies as well.

      For the record, Damon Day is not a partner and to the best of my knowledge he does not have a DIY kit.

      Which specific debt settlement company are you claiming I “bashed” that you would like to discuss? I’d be happy to examine what I said about that company and discuss it.

      Steve

      • GEKAS

        August 19, 2010 at 10:32 am

        There you go, beatin’ around the bush again.

        • Steve Rhode

          August 19, 2010 at 12:27 pm

          Sorry, I’m not sure if I understand your comment.

          Steve

      • Joe Debt Jr.

        August 20, 2010 at 9:17 pm

        Hey Joe Debt, thanks to Steve he brings FACTS vs FICTION to the table. I am assuming you are a debt settlement company who are now hurting because of all the truth and facts has be unveiled and you are trying to find reasons to point blame. It doesn’t matter if he gets paid for writing about other debt companies, as long as he presents facts. Do you contact every news channel and tell them why they are talking bad about the Lindsey Lohan?

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