Debt Relief USA of Addison, TX has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. The agency claims that it owes $4.6 Million to 7,000 consumers.
It is interesting to note that Debt Relief USA's own bankruptcy filings state that it received and disbursed client finds. Using about 300 pages of filed customer lists, we were able to determine that the agency has done business in AZ, CA, NE, RI, SC, AL, VA, MI, MN, TX, IN, IL, KS, UT, W, ME and many other states.
The filings in the case state: "In business since early 2005, the Debtor assists consumer clients to establish, follow and complete a debt negotiation plan to settle and pay off their unsecured debt under favorable terms. To that end, clients deposited funds with the Debtor on a monthly basis through an automatic electronic funds transfer. Client accounts were charged a monthly maintenance or service fee.
The vast majority of the Debtor's prepetition indebtedness is owed to its consumer clients. That indebtedness, which is unsecured, totals more than $4.5 million as of the Petition Date.
The Debtor is and has been the subject of several states Attorneys General investigations, pending lawsuits with disputed claims, and a pending Federal Trade Commission investigation. Claim amounts, if any, are unknown at this time. As the result of certain of these investigations, the Debtor was ordered to refund all money deposited by certain clients, including funds that had already been paid out to client's creditors in settlement of debts."
(sorry, I don't have a link, the piece was emailed to me).
It is interesting to note that Debt Relief USA's own bankruptcy filings state that it received and disbursed client finds. Using about 300 pages of filed customer lists, we were able to determine that the agency has done business in AZ, CA, NE, RI, SC, AL, VA, MI, MN, TX, IN, IL, KS, UT, W, ME and many other states.
The filings in the case state: "In business since early 2005, the Debtor assists consumer clients to establish, follow and complete a debt negotiation plan to settle and pay off their unsecured debt under favorable terms. To that end, clients deposited funds with the Debtor on a monthly basis through an automatic electronic funds transfer. Client accounts were charged a monthly maintenance or service fee.
The vast majority of the Debtor's prepetition indebtedness is owed to its consumer clients. That indebtedness, which is unsecured, totals more than $4.5 million as of the Petition Date.
The Debtor is and has been the subject of several states Attorneys General investigations, pending lawsuits with disputed claims, and a pending Federal Trade Commission investigation. Claim amounts, if any, are unknown at this time. As the result of certain of these investigations, the Debtor was ordered to refund all money deposited by certain clients, including funds that had already been paid out to client's creditors in settlement of debts."
(sorry, I don't have a link, the piece was emailed to me).
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