Legal Question in Bankruptcy in Minnesota
I currently am using a debt settlement program, but now am questioning beginning it. Is it possible to file bankruptcy if I am doing this? Or would that create issues? Thank you
2 Answers from Attorneys
I have had lots of bankruptcy clients who tried a debt settlement program, became unhappy with the poor results, and decided to file bankruptcy. Quitting the program and filing bankruptcy is very unlikely to create a problem.
A great many of those programs are scams. See last Saturday's Star Tribune. The MInnesota Attorney General is suing two of them right now. They have sued others in the past.
I have many cases where before filing bankruptcy my clients tried one of those programs. It is not unusual for the trustee in the case to suggest that I should report the settlement program to the authorities because of their questionable practices.
Before you send any money to an outfit like that, you should consult a bankruptcy lawyer.
This response does not create an attorney-client relationship. It is not legal advice and is for general information purposes only.
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