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Dallas Based Debt Settlement Company Issues Press Release With Jaw Dropping Statements

I was just reading a press release issued by a Dallas, TX based debt settlement company. I’m not going to publish the whole thing here but this section actually made my jaw drop when I read it.

“I have worked for a bankruptcy attorney for 13 years consulting consumers about chapter 7 and chapter 13 bankruptcies. It is plain and simple – bankruptcy is negative on your credit report for up to 10 years and will be a part of the rest of your life,” says Dennis McWain, a debt counselor for FH Financial. “Debt settlement programs only hurt your credit for three years and then it’s over. In most cases, bankruptcy costs much more than debt settlement. After working for the one largest bankruptcy law firms in Texas, I have found that debt settlement is a lot better than bankruptcy for most consumers.”

The statement that debt settlement only hurts your credit for three years is either complete ignorance or an outright lie to deceive consumers. If this group has not shown up on any of they Attorney General investigation lists yet, they might after making these statements.

The amount of debt forgiven in a debt settlement will be reflected as a bad debt on a credit report for seven years and six months from the time first reported. This does not even take into account the people that wind up getting sued by their creditors when they are withholding money to pay into a debt settlement fund. Lawsuits become public record remarks that are place on the credit report and remain for seven years as well.

A credit reporting agency stores information from credit grantors and public records, including bankruptcies, judgments and liens. Potentially negative information, such as missed payments and most public record items, remain on a personal credit report for seven years. The exceptions are Chapters 7, 11 and 12 bankruptcies, which remain for 10 years, and unpaid tax liens, which remain for 15 years. A paid tax lien will remain for seven years. Positive information may remain on a report indefinitely. Paid closed accounts generally display for 10 years. Requests for your credit history remain on your personal credit report for two years. Source: Experian

If you have an opinion about this statement by the debt settlement company. I’d love to hear it.

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Oh what the hell, here is the entire press release for you to read and be as equally shocked by.

/ Dallas, Texas / In 2008, bankruptcies rose more than 31 percent and 2009 statistics are showing signs that bankruptcies will continue that upward trend. Many consumers turn to bankruptcy to help them with their debt not knowing that there are many alternatives to bankruptcy, says FH Financial, a Dallas debt settlement company.

FH Financial Service focuses on helping consumers deal with their debt problems and finding a way to avoid filing for bankruptcy.

“Too many people run to the courthouse thinking that filing bankruptcy is the cure-all to their debt problems, says Alex Fender, vice president at FH Financial. “In hindsight, all too often they realize there are better debt reduction options without the long term implications of bankruptcy.”

What most Americans don’t realize is that bankruptcy will continue to haunt you for the rest of your life, Fender says. Employment applications ask if you have ever filed bankruptcy. Background checks will uncover the filing and even later in life when your children need student loans, there will be questions about the parents filing bankruptcy.

One alternative form of debt reduction to bankruptcy is debt settlement. Debt settlement is for people facing real hardships like loss of employment, divorce, serious medical problems and other hardships that prevent consumers from being able to pay their bills.

Debt settlement is not for everyone though,” Fender says. “There are risks to settlement and consumers should first speak with a debt settlement company to find out if it will help them.”

“I have worked for a bankruptcy attorney for 13 years consulting consumers about chapter 7 and chapter 13 bankruptcies. It is plain and simple – bankruptcy is negative on your credit report for up to 10 years and will be a part of the rest of your life,” says Dennis McWain, a debt counselor for FH Financial. “Debt settlement programs only hurt your credit for three years and then it’s over. In most cases, bankruptcy costs much more than debt settlement. After working for the one largest bankruptcy law firms in Texas, I have found that debt settlement is a lot better than bankruptcy for most consumers.”

FH Financial Service is a member of the United States Organizations for Bankruptcy Alternatives and the International Association of Professional Debt Arbitrators. It helps individuals facing financial crisis work with creditors to avoid bankruptcy and minimize the long term impact on an individual’s credit report.

The Dallas debt settlement company says each debtor’s individual circumstances are unique so consumers need to look into all forms of relief from their debt. Bankruptcy can benefit certain people but it is not the only option. Debt settlement is a proven method to help consumers reduce their debt without filing bankruptcy.

For more information, please visit: http://www.FHFinancialService.com

About FH Financial Service: FH Financial Service, Inc. is a debt relief and debt counseling company located in Dallas, Texas. The company is a member of both the International Association of Professional Debt Arbitrators and the United States Organizations for Bankruptcy Alternatives. Source

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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.

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