Debt Relief USA in Addison files for bankruptcy

[StartingOver08]

June 23, 2009

Debt Relief USA Inc., an Addison debt settlement company, has filed for Chapter 11 bankruptcy protection and has ceased operations.

In its court filing, the company listed $4.65 million in assets and $5 million in liabilities.

"Debt Relief USA anticipates sending written instructions to its customers, most former customers, creditors and known potential creditors with instructions on any steps you need to take to protect your interests," the company said on its Web site, www.drusa bankruptcy.com.

The Web site will be used to update the status of the case.

In its court filing, Debt Relief said it is a target in several investigations by state attorneys general and federal authorities.

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."

By PAMELA YIP / The Dallas Morning News
[email protected]

http://www.dallasnews.com/sharedcontent/dws/bus/stories/062409dnbusdebtrelief.3bc5f20.html

[debtmonster]

I'm glad I NEVER used any of those scam companies.

[frogger]

Now that is just too funny!

[debtmonster]

I hope they all go bankrupt. We don't need scumbag companies like that bringing the working man down.

[Iwantmyname]

well, anything that happens the vultures, crows, wolves and hyenas will be following at the rear picking up the carcases. I guess it is called "capitalism."

[BkinTX]

Hilarious!

[ForumReader]

I hope they all go bankrupt. We don't need scumbag companies like that bringing the working man down.

Amen to that. I was a recent Halo Debt Solutions (HDS) client and withdrew not too long ago. Best hope is for anybody contemplating working with a debt settlement company is to come to bankruptcy forums and read everything before making a decision what to do about his or her debt. I really really wished I knew about the BK forum before signing up with a scam company like HDS, but I was too wrought with a sense of responsiblity trying to pay back my obligations when now I am no longer able to and filed for BK the other day.

[klandsb]

I hope all Debt Settelment Companies go under. They are a complete rip off !!! One has $3000 of mine that I am trying despertly to get back.... It would help to pay my Chapter 13 attorney..... Wrote to the Attorney General of PA hoping with his assistance I may have a slightly better chance.... After 8 mths of $500 a mth I ended up with a judgement being filed on my...Oh they did send me the $880 I had in my stored savings acct but kept the rest of the money for administration fees... I was very naieve and like the prev post felt like I charged the money and was willing to pay some back..
So now I start what I should have started 9 mths ago... A chapter 13 reoriginization

[ForumReader]

I hope all Debt Settelment Companies go under. They are a complete rip off !!! One has $3000 of mine that I am trying despertly to get back.... It would help to pay my Chapter 13 attorney..... Wrote to the Attorney General of PA hoping with his assistance I may have a slightly better chance.... After 8 mths of $500 a mth I ended up with a judgement being filed on my...Oh they did send me the $880 I had in my stored savings acct but kept the rest of the money for administration fees... I was very naieve and like the prev post felt like I charged the money and was willing to pay some back..
So now I start what I should have started 9 mths ago... A chapter 13 reoriginization

I am curious, is contacting the Attorney General of the state the only way to get a debt settlement company to pay the client back at least some of the fees? There has to be a way to recoup some of the fees back. I paid over $4K and I am positive the debt settlement co sales consultant knew it was not the right path for me to be in their program but convinced me to be in the program. I plan to file a complaint to the FTC about the debt settlement company I was enrolled in, but what can we benefit from filing a complaint to the FTC? There has got to be a way to recoup at least some of the fees back.

[klandsb]

I really wish I had the answer to that... I read another thread on here somewhere and the state he was in the Attorney General was going after the settelement companies. He ended up writing to them and recouped all of his money. I filed a complaint w/the better business bureau, and also wrote to the company explaining that I will not stop until I get my money back. I had my boyfriend call them last Friday and they said without a Power of Attorney letter they cant talk to him. So I am going to fax them that and see if he can get anywhere with them. It is sooo very frustrating to know that I am just one customer out $3000 and there are probally hundreds of us struggling to pay off the creditors. When the jugement was filed they more or less said sorry about your luck .I really wish I knew who to contact that could do something...

[StartingOver08]

Here is an update on the Debt Relief USA Bankrupcy!

Thought you might be interested in seeing the progress of this bankrupcy. They even have their own BK site to keep the creditors up to date with their petition actually published, see the link below.


They have converted the Ch 11 to a Ch 7. Here is the link directly to the updates: http://www.drusabankruptcy.com/6001.html

Read the entire update, it is very detailed. Apparently there is $4.7 million in cash but according to the website none of the cash will be available to refund to the consumers/creditors that paid the funds to Debt Relief USA.

[HHM]

Interesting.

Well, that pretty much means the end to Debt Relief USA.

[sansdollar]

The irony is not lost on me!

[cocojambo]

June 23, 2009

Debt Relief USA Inc., an Addison debt settlement company, has filed for Chapter 11 bankruptcy protection and has ceased operations.

In its court filing, the company listed $4.65 million in assets and $5 million in liabilities.

"Debt Relief USA anticipates sending written instructions to its customers, most former customers, creditors and known potential creditors with instructions on any steps you need to take to protect your interests," the company said on its Web site, www.drusa bankruptcy.com.

The Web site will be used to update the status of the case.

In its court filing, Debt Relief said it is a target in several investigations by state attorneys general and federal authorities.

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 consolidation 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."

By PAMELA YIP / The Dallas Morning News
[email protected]

http://www.dallasnews.com/sharedcont...f.3bc5f20.html

I would never go for any debt settlement or consolidation company, what they've probably done is collected over $4 million in debt settlement fees from their clients, and adding/erroneous liabilties so they can declare bankruptcy. The actual cash has already been stolen from the company.