Leading bankruptcy attorney Harold E. Campbell, reveals problems with debt settlement companies in Mesa, Arizona

Harold E. Campbell, founder at Law Offices of Campbell & Coombs P.C., has just revealed how people in debt can be led astray by debt settlement companies in Mesa, Arizona. For more information please visit

Mesa, Arizona, United States - December 4, 2017 /MM-REB/ —

Bankruptcy attorney Harold E. Campbell, founder at Law Offices of Campbell & Coombs, PC has just revealed why bankruptcy is often a better choice than debt settlement.

For more information please visit http://www.haroldcampbell.com/

Mr. Campbell says that one of the biggest problems he sees among his clientele is that they are discouraged from filing for bankruptcy by debt relief company promises and opting for debt settlement instead.

“These companies are advertised on the internet or over the radio, and they claim that they can settle the debt for 30 or 40 cents on the dollar, on the client’s behalf”, said Mr Campbell.

With 39 years of experience, Mr. Campbell added, “I’ve never had one client say that they were happy after dealing with a debt settlement company, who will often charge hidden fees, tell clients to stop making payments on debts, and make them vulnerable to lawsuits by debt collectors.”

Mr. Campbell outlines three reasons why filing for bankruptcy is a better option than debt settlement.

1. Restore Credit in One Year

Declaring bankruptcy, Mr. Campbell says, “is a better option, as it allows clients to rebuild their credit in a relatively short period of time, something that can’t be done by going through a debt settlement company.”

“These companies often tell their clients to cease payments, so that they can resolve the debts. Even when these debts are negotiated and resolved – which sometimes they aren’t – the fact that the clients fell behind on payments shows up on their credit reports. Furthermore, the credit report will also have a notation that states the debt’s been settled for less than 100%, which is just as damaging,” he said.

Declaring bankruptcy, on the other hand, opens the door for a fresh start.

“What a lot of people don’t understand is that filing for bankruptcy – in most cases – means wiping the debt slate clean. This allows for my clients to re-establish themselves credit-wise in about a year or two as they don’t owe anybody after filing.”

Mr. Campbell also adds that bankruptcy works in his client’s favor as they are not allowed to file again for 8 years, something that is viewed favorably by creditors because a creditor knows if they default next time the consequences will be much greater. Dealing with debt settlement companies, however, offers no such luxury.

2. Avoid Extra Taxes

Another pitfall of dealing with debt settlement companies is the hidden costs not made clear to clients.

When asked to elaborate, Mr. Campbell explained, “Let’s say a client has a $10,000 American Express bill, and the company settles for $3,000. American Express will then send a 1099 form for debt forgiveness, and they’ll be expected to pay taxes on the rest of that $7,000, which is seen as extra income.”

Bankruptcy does not create debt forgiveness income with the IRS, so clients don’t have to pay extra taxes on the debt that is wiped clean.

3. Unrivalled Personal Interaction

Another reason to steer clear of the debt settlement companies is the lack of personal attention given to each case, as all communication is done over the phone usually from a remote location.

Instead, Mr. Campbell says, most bankruptcy attorneys provide a free one-on-one consultation with potential clients, which is something offered by the Law Offices of Campbell & Coombs. These meetings allow the prospective client to examine all their options including bankruptcy and other non bankruptcy options.

When asked about other benefits, Mr. Campbell said, “This face-to-face time allows the clients quality control and to make sure that their attorney is working on their case, which is something that they cannot do with these remote debt settlement companies.”

Harold E. Campbell is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA) and the American Bankruptcy Institute. He is the State Chair of NACBA in Arizona and recognized as a member of the Order of Protectors of Consumer Debtors by NACBA.

For more information please visit http://www.haroldcampbell.com/

Contact Info:
Name: Harold E. Campbell
Organization: Law Offices of Campbell & Coombs P.C.
Address: 1811 S Alma School Rd #225, Mesa, AZ 85210, USA
Phone: 480-839-4828

Source URL: http://RecommendedExperts.biz/

For more information, please visit http://www.haroldcampbell.com/

Source: MM-REB

Release ID: 272763