Houston Bankruptcy Lawyer » Debt Settlement

Money Management International Moves to Sugar Land Texas

Thomas Black — Thu, 24 Jun 2010 16:48:57 +0000

Money Management International (MMI) has decided to move its headquarters to Sugar Land, Texas. MMI is the largest non-profit, consumer credit counseling companies in the United States. This is a legitimate company, not like the so-called “debt settlement” companies that you see on late-night TV or on the internet. MMI’s web site is at http://www.moneymanagement.org.

MMI provides financial guidance and counseling, and if you qualify can put you on a debt management plan (DMP) to repay your debts over time. DMP’s don’t generally reduce your debt; they are “consolidation” plans, where you make one payment a month to MMI, and MMI pays your creditors for you.

For the people that can afford these DMP plans, they are fine. It can help you avoid bankruptcy. Many of my clients have consulted with credit counselors before they come see me, and legitimate ones like MMI will just tell them whether or not they can help them, or if they should consult an attorney about their debt problems, and possibly consider filing bankruptcy.

Most if not all of the “shady” debt settlement companies, are not even legally operating in Texas. To operate legally, they have to be registered with the Texas Consumer Credit Commissioner, and comply with the Texas Debtor Assistance Law, which almost none of them do.

To see if your debt settlement company complies, go to http://www.occc.state.tx.us/pages/searches.htm and click on “List of Debt Management Service Providers. If your company is not on that list, they are not operating legally in the State of Texas.

I just had a couple come in to the office this morning, that had paid a debt settlement company $9000 in fees, and the company had only settled one debt for them. Then they were sued for $19,000 by a creditor, and the debt settlement company told them they needed to file bankruptcy.

So the debt settlement company basically did them no good at all. We will likely put them into a Chapter 13 bankruptcy, paying $450 per month for 5 years. That will repay 30% of their $75,000 in unsecured debt, with the rest being discharged or cancelled. And no one can sue them or call them at work trying to collect, once they file Chapter 13.

If you are interested in consulting with me about your options, including filing a bankruptcy case, and you live in the Houston Texas area or surrounding counties, give my office a call at 713-772-8037 and make an appointment to meet with me. Or you can make an appointment on my website at http://www.jthomasblack.com. There is no charge for your first visit.

Anyway, welcome to Sugar Land, MMI. I’m sure you will be a good neighbor!

Govt. Agency Blasts Debt Settlement Companies

Thomas Black — Sat, 24 Apr 2010 14:59:03 +0000

The Washington Post reported yesterday that a government investigation into the debt-settlement industry has found that many debt settlement firms misled consumers by claiming to be affiliated with federal stimulus programs and exaggerating their ability to reduce consumers’ loans .

The report by the GAO, the Government Accountability Office, was presented yesterday at a Senate Commerce Committee hearing, and it included recordings of salesmen describing their companies as “government approved” and linking settlements to the federal bailout of troubled banks.

Debt settlement companies charge a LOT of money, and they are heavily regulated in Texas.

In fact, it’s common for these services to not even be operating legally in Texas. In Texas, debt management or debt “pooling” services are regulated by the Texas Debtor Assistance Law, which is Chapter 394 of the Texas Finance Code. The Texas Finance Code is at http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.394.htm (See Chapter 394).

These services must be registered with the Texas Consumer Credit Commissioner in order to be operating legally. A list of those services that are registered is on the web site of the Texas Consumer Credit Commissioner at http://www.occc.state.tx.us/pages/searches.html. Click on “List of Debt Management Services Providers” to see if your service is listed.

If you are a Texas resident, and your debt management service is not listed on that page, or if they have violated other provisions of the act, you may have a right to recover from them: (1) all the money you’ve paid them; (2) any actual damages you’ve suffered as well as punitive damages; (3) attorney fees for enforcing your rights; and (4) injunctive relief (a court order stopping them from continuing to operate illegally).

Frankly, there is no real secret to settling your debts, if you have the money to do so (which many people that try to settle their debts, don’t). Debt settlement is one option that I discuss with my clients when they come in for a bankruptcy consultation with me, and sometimes it can be a viable option, usually if they have only one or two major creditors.

If you are having problems with debts, and live in the Houston Texas metropolitan area, call my office at 713-772-8037 for an appointment to meet with me. For more information, visit my web site at http://www.jthomasblack.com .

Another Debt Settlement Company in Trouble – “Debt Relief Group” Sued In Class Action

Thomas Black — Wed, 26 Aug 2009 22:47:39 +0000

The Sandia Mountains, Albuquerque, New Mexico

There is a class action lawsuit pending in the U.S. District Court for the Western District of San Antonio against Debt Relief Group, LLC, and some alleged associates or associated entities including The Palmer Firm, PC, The Seideman Law Firm, PC, Epic Financial Management, Robert Ancel Palmer, III, Scott R. Seideman, Gregory M. Fitzgerald and Keith J. Waring (CIVIL ACTION SA09CA0637).

The gist of the allegations is that the Defendants operate a “debt settlement company” in violation of the Texas Finance Code, Chapter 394, Consumer Debt Management Services.

The suit says: the Defendants operate an elaborate nationwide scheme promoted by television and internet advertising to defraud debtors that are drowning in credit card and unsecured debt. By masquerading as attorney referral services, unregulated debt negotiators and exempt attorneys, the Defendants collaborate to evade strict state consumer protection regulations enacted to protect unknowing debtors.”

Folks, like I tell the prospective clients that come and consult with me, most if not all of these debt settlement companies are operating illegally in the State of Texas. And if they are operating illegally FROM THE GET GO, it’s not going to be a stretch for them to take your money and leave town, or file bankruptcy, both of which have happened.

In either event, you are likely out of luck. The law regulating these companies has strict requirements, including putting up a bond, being a non-profit organization, making detailed disclosures to consumers, and many others, which the shady ones are not going to comply with. The Texas law that regulates debt settlement companies is at: http://tlo2.tlc.state.tx.us/statutes/fi.toc.htm (see Chapter 394).

The law also requires that these companies register with the Texas Consumer Credit Commissioner, and the list of the few that are approved is at: http://www.occc.state.tx.us/pages/searches.html (see “List of Debt Management Service Providers). If you live in Texas, all of the others that you see advertising to you on TV and so forth are operating outside the law, if they are not on this list.

If you are in serious credit card debt, or other types of debt, come see an expert bankruptcy attorney such as myself. I discuss bankruptcy but I also discuss all of your options with you, as they relate to your particular circumstances.

One option that I talk to all my clients about is settling with your creditors, but it is only one option out of five options, and frankly, it has some bad points to it, which I will discuss with you if you come in to see me.

I offer a free consultation to consumers with debt problems that live in the Houston, Texas area or surrounding counties. To make an appointment, please call my office during working hours at 713-772-8037. Or you can make an appointment 24 hours a day at my main web site, http://www.jthomasblack.com. Just click on the red button on the upper right-hand side of any page.