What exactly is a “debt relief agency”?

January 24, 2011
>> Bankruptcy, Debt

In the bankruptcy world, there are a lot of terms with the word “debt” in it that tend to blur together for the average non-lawyer, such as:

Debt relief agency
Debt relief
Debt settlement
Debt consolidation

While numbers 2, 3 and 4 are frequently heard in shady TV ads hawking services that sound too good to be true, the term “debt relief agency” actually has a very different significance.

Under the 2005 Bankruptcy Law (aka “BAPCPA”), all bankruptcy lawyers are required to identify themselves as debt relief agencies in any advertising. However, often when people hear or see that, it causes confusion. Is this person a lawyer? Or a debt relief agency?

The answer is that the person is a lawyer. But the law requires a reference to themselves as a “debt relief agency.”

The process can be confusing. If you have more questions about the bankruptcy process, please feel free to contact me for a free initial consultation in our Brooklyn, NY or Melville, Long Island offices.

Learn more about our fair debt collection practices act or the following link to find answers to commonly asked questions about bankruptcy.

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

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