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When money is hard to come by,  particularly during a time of economic downturn, many people are finding  themselves having difficulty making ends meet and they fall deep into  debt.  The very thought of going into  debt and watching the bills pile up adds stress to your life and the constant  calls from creditors and bill collectors can easily make you feel  overwhelmed.  These thoughts and feelings  often make people very vulnerable and they become an easy target for credit counseling, debt management, or debt relief programs that are actually in the  business of making money off of you and your creditors.


Many debt relief programs are  really scams run by con artists who disguise themselves as credit counselors or  other non-profit organizations in order to gain consumers’ trust.  Given the troubling economic climate and the  large amount of confusing information out there, it is crucial that people  educate themselves and arm themselves with the truth about debt relief and  credit counseling companies.


Here are some eye-opening facts  that debt relief programs and credit counseling companies do not want you to  know:

  • Credit counseling companies are NOT regulated by the federal government, so there is no set of central standards that companies must follow.
  • The biggest source of income for  debt counseling companies comes from credit card companies themselves  (creditors kick back a percentage of each monthly payment to the debt  counselor).

  • Next to minimum payments on high  interest credit card debt, credit counseling is how credit card companies make  most of their profit.

  • Your credit rating will drop  immensely by using a debt counselor which, in turn, will involve you paying  much more in fees and interest rates while you are enrolled in your debt  management plan.

  • The IRS is conducting an ongoing investigation of the entire credit counseling industry


Bankruptcy is an effective alternative to debt management programs and credit counseling.  Bankruptcy helps people who do not have the  means to pay their bills get a fresh start. This fresh start “is accomplished  through the bankruptcy discharge, which releases debtors from personal  liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.”

Like credit counseling and debt management programs, there is an immense amount of bad information out there  about bankruptcy.  Here are just a few  common misconceptions about filing for bankruptcy:


MYTH: You will never get credit again after filing  for bankruptcy.


In fact, by discharging your  debts in bankruptcy you become more attractive to lenders because you have  little or no debt and “your income is protected because your old creditors are discharged, forever.”


MYTH: Filing for bankruptcy means never owning a  home again.


The Federal Housing Authority has  stated that after two years have elapsed since the discharge date of a Chapter  7 bankruptcy and re-established good credit is demonstrated, a borrower can obtain a FHA mortgage.


MYTH: Only bad people and deadbeats file for  bankruptcy.


Bankruptcy is a solution to help  good people get through tough times.   Many people who file for bankruptcy have to file because they have lost  their job, gone through a divorce, or experienced a medical illness.


Bankruptcy is a solution to help good people get through tough times.   Many people who file for bankruptcy have to file because they have lost  their job, gone through a divorce, or experienced a medical illness.

At the Law Office of Joseph M. Annutto PLLC, our bankruptcy attorneys have several years of  experience helping people get out of debt by filing for bankruptcy.  We offer a FREE initial consultation and will  explain the bankruptcy process and help you decide whether bankruptcy is the  right option for you.


Contact Us

Law Office of Joseph M Annutto, PLLC

369 Main St

Nashua, NH 03060


Phone: +1 (603) 881-9161

Fax: +1 (603) 821-5185




400 TradeCenter; Suite 5900

Woburn, MA   01801


Phone: 978-458-4566

Fax: +1 (603) 821-5185




100 Cummings Center; Suite 207-P

Beverly, MA   01965


Phone: 978-458-4566

Fax: +1 (603) 821-5185




Or use our contact form.

Office Hours

We can be reached during the following hours:


Monday through Friday

8:30 am to 5:00 pm


And at other times by appointment

10.0Joseph M Annutto

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