Student loan debt is a major crisis in the United States, and struggling borrowers of all ages have been targets of fraudulent “debt relief” companies which promise recovery and debt-consolidation in exchange for money.While these companies are skilled at presenting an opportunity for financial relief, they charge monthly dues and unlawful upfront fees while actually allowing borrowers’ payments to lapse, resulting in ruined credit among a range of other financial difficulties.
Although the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have successfully closed multiple debt-scamming companies, new ones continue to appear to prey on the many millions of Americans who struggle with student debt; it’s estimated that one in every five American households has student debt, and with a myriad of other financial problems such as mortgage debt and a rising cost-of-living, there are far too many targets for fraudulent companies who promise relief while actually siphoning more money from American citizens.
Some clients contact bankruptcy attorneys only after regrettably hiring a debt-settlement company and compounding their financial difficulties rather than relieving them; don’t be one of them. If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.