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Debt Settlement Company Debt Relief USA Files Bankruptcy

Debt settlement company Debt Relief USA has filed bankruptcy in Texas following recent investigations and suits by the attorney general of several states.

The bankruptcy petition can be viewed here and shows the ownership of Debt Relief USA to be Kelly E. Reilly, Alvin B. Bell, and James F. Wojcik.

What will be significantly up in the air is going to be the disposition of payments made by consumers that have only gone towards fees by Debt Relief USA that may no longer be able to honor those commitments.

Gary A. Armstrong, the company’s attorney, said Debt Relief will not negotiate individual settlements and will not remove money from individual accounts pending the bankruptcy proceedings.

The bankruptcy filing won’t affect any debt settlements the company has reached with a client’s creditors, he said.

On client deposits at Debt Relief, Armstrong said, “Our intention is to refund them as much as possible, but it’s subject to bankruptcy court approval.” Source


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About Steve Rhode

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.
  • Crystal Moreno

    If I have an account that is now up in the air, what do I do. I was half through my program. Am I just out or am I going to get my money back.

    • Steve Rhode


      It is unlikely that you will get all of your money back. You may get some money back as an unsecured creditor after the secured creditors are paid. You should receive a claim form or notice in the mail. If you have not you can always contact the Debt Relief USA lawyer and ask for the current status of the case and the refund policy.


      • Chase Jeannotte

        Mr. Rhode, can you please tell me how to contact the D.R. USA lawyer, or who it is? I have lost almost $5000.00 with this company. If there is any way you can help me, please let me know. Thank you for your time.

      • Steve Rhode

        You might want to follow this process How to Get Out of a Debt Settlement Program and Get a Big Refund.


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