As U.S. citizens go deeper and deeper into debt, one of the fastest-growing industries in the U.S. has been debt restructuring—firms which promise to negotiate with the IRS, the bank backing your credit cards, and your home-mortgage note holder to allow you to pay pennies on the dollar and escape the clutches of debt collectors. Unfortunately, these companies often create more damage than they mitigate—at which point, you'll have no choice but to hire an experienced Oklahoma tax attorney to clean up the mess.
Late-Night TV Commercials Promise More than They Can Deliver
Why do so many people fall into the clutches of these debt-restructuring firms, when they'd be better off consulting a lawyer? Well, their TV and radio commercials are certainly enticing: these firms “promise” that they can:
- Work directly with the IRS and slash your tax bill by 90 percent
- Consolidate all your debts into one easy payment plan—payable to them
- Guarantee you'll never again be harassed by the government or debt-collection agencies
How do they get away with this? Well, very few people watching TV bother to read the fine print accompanying these come-ons. For instance, you may well be able to consolidate all of your debts, but you'll also be paying an exorbitant interest rate on the debt which remains, putting you in an even worse situation than before. The debt-restructuring company might even seek the title to your house, or other assets, in exchange for its “help!”
More to the point, there's no evidence that the IRS takes these debt-consolidation companies any more seriously than the general public does. An IRS revenue officer may well be annoyed, rather than pleased, to hear from one of these bogus infomercial concerns, rather than from an experienced tax lawyer who actually knows what he is talking about.
Don't Go the Debt Consolidation Route—Contact Travis W. Watkins, PC Today
As easy as it may seem to pick up the phone in response to an infomercial and enlist the help of a debt-consolidation agency—especially if it's late at night and you can't sleep for all your worrying—any tax lawyer will tell you it's a bad idea, and can actually increase rather than reduce your tax bill.
Questions? Call the Oklahoma tax experts at Travis W. Watkins, PC today (800-721-7054) for a free consultation!