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In the following paragraphs, a Clermont bankruptcy attorney provides insights into the role of the debt relief agency.

What It Is
A debt relief agency is exactly what it sounds like: an individual or group of individuals who are in business to help people who owe large sums of money. Debt relief agencies are paid for their services to “assist persons.” These agencies also offer services in bankruptcy cases.Assisted Persons
These are people who are in debt and whose total amount of property that the court can sell under bankruptcy laws does not meet the limit defined under statute.For someone filing bankruptcy, a debt relief agency is any goods or services meant to provide information, advice, counsel, document preparation or filing, attendance at a creditors’ meeting and representation with respect to the bankruptcy case.

Who Is Included
Lawyers and specialists in the preparation of bankruptcy petitions fall within this classification. The obligation of lawyers to take on this role has been contested and judicial decisions have varied.

Who Is Not Included
The classification of “debt relief agency” omits the following:
• Someone who works for or represents the person giving the help.
• Any not-for-profit entity.
• Someone to whom the debtor owes money, if that person or entity is providing help.
• Accredited financial institutions such as credit unions or banks and their associates.
• Anyone who has written or published copyrighted material.

The Contractual Agreement
Within one business week of starting services and before any petition is filed, debt relief agencies must provide a hard-copy agreement to the person receiving assistance. This contract must set forth all terms and conditions, any applicable charges or fees and how payment is to be made to the agency.

Call Your Clermont Bankruptcy Lawyer for Advice
If you are considering contacting a debt relief agency, seek the guidance of a skilled Clermont bankruptcy attorney for sound legal counsel. Call Merideth Nagel, P.A. at 352-394-7408 today.

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