Any Debt Relief USA Clients Here?

havent they just filed for bankruptcy recently? i just heard it on the news and i'm pretty concerned about it. what's gonna happen to the debt relief USA clients then?

 

I'm not a client and I got this from one of the threads here,

Debt Relief USA Chapter 7 bankruptcy:

"On June 18, 2009, Debt Relief USA, Inc. filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division....On June 24, 2009, the Court determined that it was in the best interest of the estate to convert this case to a case under Chapter 7 of the Bankruptcy Code. This means that a Trustee will be appointed to supervise the wind up of the affairs of the Company and its property.

Clients, certain former clients, and other creditors should receive additional information by mail."

Here's an update from their website:


UPDATE 8-3-09:

On July 29, 2009, the Court held a status conference to discuss the current status of the case. The Texas Attorney General, Counsel for the Company, the Chapter 7 Trustee, Counsel for the Chapter 7 Trustee, and the U.S. Trustee, as well as one creditor, were all represented at the conference, which lasted approximately 45 minutes. The Chapter 7 Trustee, the U.S. Trustee, and the Attorney General are discussing, with the cooperation of the company, the best way to handle claims of consumers and other creditors involving the case. So far, the parties have not reached any resolution, but will continue to work toward that resolution. The Court has not yet been asked to decide what to do about notice to consumers.
The Court noted that some individual consumers are filing proofs of claim with the court and that some of those proofs of claim contain confidential personal information. Therefore, the Court decided to seal from public inspection all proofs of claim filed in the case.

Also on July 29, 2009, the Debtor's meeting of creditors under Section 341 of the Bankruptcy Code commenced. The company's representatives testified at the meeting and a few questions were asked of them by the Chapter 7 Trustee's counsel. Because, in part, the questions about how to handle the property of the estate and what notice to give to consumers are still up in the air, the Chapter 7 Trustee decided to adjourn the meeting and re-convene it on August 26, 2009 at 1:00 p.m.

I hope that the former clients  of Debt Relief USA get back what's theirs.

Anyway, I think that one of the lessons learned here is, life can be very random--but there are instances that we can plan or control. Like choosing the right debt relief service and company for us.

Destroydebt.com offers a free initial consultation, just fill out a form.

What should potential clients look for in a debt relief service?

What should potential clients look for in a debt relief service?  - DEBT SETTLEMENT

Membership

+
-The settlement company's program must have a fast completion time. 12-36 months.
-The program must be able to protect and improvethe consumer's credit standing.
-Must be a member of the Better Business Bureau, BBB, for at least 5 years.
-Must also have a good standing with the Chamber of Commerce
-A Member of TASC - The Association Of Settlement Companies and the IAPDA or the International Association of Professional Debt Arbitrators

Just to add to that, here is where to find them online:

Better Business Bureau BBB www.bbb.org
TASC www.tascsite.org
USOBA www.usoba.org
IAPDA www.iapda.org

What should potential clients look for in a debt relief service?  - CREDIT COUNSELING

Credit counseling according to the BBB:

Before you select a credit counseling agency ask for information on the following:

Are the agency services confidential?
Will they devise a plan tailored to fit your needs?
Are the counselors certified?
Are budget and credit education opportunities offered?
Will your funds be protected? How?
Is the agency accredited?

What should potential clients look for in a debt relief service?  - CREDIT COUNSELING

Aside from BBB membership (www.bbb.org) the consumer should also check its affiliation with the National Foundation for Credit Counseling  http://www.nfcc.org.