Debt Articles

American Debt Support Makes Some Interesting Statements About Bankruptcy

American Debt Support (americandebtsupport.com archive) makes some very peculiar statements on their site which seem intended in turning people away from bankruptcy and towards their debt validation and settlement services. They reminded me of similar statements that were included in the allegations of the class action suit against Metron Services and Miracle Debt Group.

Prominently placed on their site is the FAQ statement “Why Not Just File Bankruptcy?” and another statement “Our goal is to assist families in getting out from under the stress and negative impact that financial strain can cause.” – Source

The FAQ link takes you to a page of a number of Q&A. – Source

On that page they say:

Question: Why Not Just File Bankruptcy?

Answer: Congress has passed recent legislation that limits one’s ability to file bankruptcy. Even with Bankruptcy you still may end up paying the majority of your debt. Recent legislation places strict limits on the declaration of a Chapter 7 bankruptcy. The majority of consumers will now only qualify for a Chapter 13 bankruptcy. Chapter 13 bankruptcy may not afford you the opportunity to Validate your debt before your repayment plan begins. – Source

Seriously? You would think that since American Debt Control says, on the same page, they work directly with “The Mohnsam Firm, PLLC is a law firm based in Kentucky with affiliated attorneys in all 50 states,” that someone would have checked the FAQ page for accuracy.

Let me break down their bankruptcy position which seems like it could just be a way to scare consumers away from bankruptcy.

They say:

Congress has passed recent legislation that limits one’s ability to file bankruptcy. [In 2005. You call that recently?]

Even with Bankruptcy you still may end up paying the majority of your debt. [In very limited cases. The vast majority have their debt totally wiped out in months with no tax liability.]

See also  Wise Counsel Debt Solutions Review

Recent legislation places strict limits on the declaration of a Chapter 7 bankruptcy. [The 2005 legislation created a means test to determine if you have to file Chapter 7 vs. Chapter 13 bankruptcy.]

The majority of consumers will now only qualify for a Chapter 13 bankruptcy. [More than 70% of bankruptcy filers are Chapter 7.]

Chapter 13 bankruptcy may not afford you the opportunity to Validate your debt before your repayment plan begins. [May not is a whole lot different than does not. Besides, if you know you used the credit, what is there to validate?]

So if the priority of the site is to “assist families in getting out from under the stress and negative impact that financial strain can cause” then why are they clearly misstating facts about bankruptcy which is a legal and swift option for most to deal with their debt swiftly for less than about $1,750?

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.





About the author

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.

2 Comments

  • sounds like this was written in November of 2005 when the attorneys (and even judges and trustees) had not yet figured out how to do a Chapter 7 under the new laws. It did take attorneys a few months to get things sorted out, but that was years ago.

  • sounds like this was written in November of 2005 when the attorneys (and even judges and trustees) had not yet figured out how to do a Chapter 7 under the new laws. It did take attorneys a few months to get things sorted out, but that was years ago.

Leave a Comment

Scroll to Top