Four debt relief companies are the target of enforecement action taken by Texas Attorney General Greg Abbott’s office.
Dallas area based BC Credit Solutions allegedly told clients that they would have to pay off full balances and interest in a Chapter 13 bankruptcy. Provisions of the U.S. Bankruptcy Code allows the amount of money owed to unsecured creditors to be reduced.
LH Financial Service, also based in the Dallas area, allegedly told clients that they would lose their home, investment accounts and other large assets in bankruptcy. Exempt property in the state of Texas includes the homestead and up to $1 million in retirement savings.
Louisville, Kentucky based DebtORSolution allegedly claimed that filing a Chapter 7 bankruptcy would result in an auction of all your property, when in practice federal and state bankruptcy exemptions allow the debtor to keep most of thier property.
Scottsdale, Arizona based Four Peaks Financial Services allegedly told customers that their debt settlement program “allows your credit score to dramatically improve,” when in fact it can have a negative impact on a debtors’ credit rating.
