A reader tipped me off the debt settlement company filed for chapter 7 bankruptcy protection. They filed on February 28, 2013.
Their bankruptcy application lists assets of $0 to $5,000 and liabilities of $50,001 to $100,000.
Morgan Bryan Perry signed the filing as President of Debt Validation of America.
The entire assets of the company were listed as four telephones, five desks and four computers worth $490.
The liabilities included a number of claims made by clients. Many with unknown values.
There was one very interesting entry for The Firm, PLLC for $16,817. The Firm was alleged to have taken over the services or accounts of Debt Validation of America at one point.
The downfall of Debt Validation of America was dramatic. They reported the following income:
2011 – $1,440,168
2012 – $161,087
2013 – $0
According to the filing there are a couple of ongoing lawsuits against them for breach of contract.
They closed their bank account on February 14, 2013 with $9.87 in it.
You can read the entire bankruptcy filing Source.
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.