Legal Question in Credit and Debt Law in Virginia

Re: Debt negotiation companies

Debt counseling organizations are usually scam artists that want to loan you more money for their own profit. There is such a thing as a debt counseling service, which is on the up-and-up, but these people don't usually advertise on TV or do "telemarketing" on the phone. You can call the Virginia State Corporation Commission at 1-800-552-7945 to get the names of licensed debt counsellors where you're located.

Btw, I agree completely with Mr. Sawyer in his observations.

Re: Debt negotiation companies

Negotiation companies AKA "workout specialists" are rarely licensed attorneys and usually cannot negotiate anything that you could not do on your own.

Remember that unless the creditor agrees in writing to repair your credit report, the workout will do absolutely nothing to repair your credit. Moreover, debt discharge outside of bankruptcy often results in income tax liability, both federal and state. You should check with your accountant first to do the analysis on the IRS schedule.

If you cannot obtain a satisfactory workout with your creditors -- including their written agreement to repair your credit report -- then you should consult with a local bankruptcy attorney to discuss your options.