Debt relief, insolvency or personal bankruptcy is a very good solution for many people to get rid of debts and start living again, but there are a number of pitfalls to watch out for. As in other areas of debt relief, personal bankruptcy and insolvency, you can run into a lot of fraudsters, or at least many people and companies whose only goal is profit, whether or not they really help you. These actors take advantage of the fact that people who are in financial difficulty and who do not currently see a solution to their situation are more easily attracted and misused.
Beware of charges in advance
It is not uncommon for people to pay to process a debt relief proposal, but they will no longer receive a court proposal. Just as in the lending business, there are a number of fraudsters who only want to ask people to pay a deposit of several thousand crowns and then stop communicating. Of course, not every person or company that requires payment in advance is fraudulent. It is fairly common for an advance to be paid before a court proposal is drawn up, but you still need to be careful about who you pay the money for and choose a truly trustworthy company.
You may find yourself in a worse situation than you were in
Often, not only deceived people turn to us, but also those who have been misrepresented and misrepresented the information they have subsequently paid for. Not every debt relief proposal is approved by the court because certain conditions need to be met. It is very important that the petition is properly drawn up for the court. Just because you paid to process your debt relief doesn’t mean that it will be automatically approved. However, if it is prepared by an experienced and quality company, it should inform you in advance whether this proposal will be accepted by the court, which can be estimated with great accuracy. However, the experience of people who turn to us suggests that some entities have to pay for proposals that they already know beforehand that they will not be approved by the court because the client does not meet the legal conditions for debt relief. If the court rejects the debt relief proposal, the debts continue to increase and can increase significantly as a result of the process. The court may also in some cases decide that the bankruptcy of the debtor be settled by bankruptcy or sale of property, and people are then unpleasantly surprised.
If you want to save, you can pay for it
Many people choose the person or company that pays the least for the proposal. In such a situation, it is necessary to realize whether you will get quality for a low price. There are individuals who act as self-employed and process designs on their knees for a few thousand crowns. They have it as a “hipster”, or extra earnings, and the quality of workmanship is often not sufficient, because they lack the necessary knowledge of laws and experience. The low price can only act as an attraction, there is also a higher risk of fraud. It is also important to know what is included in the price. While some companies state the cost of processing, but only after you have drafted the proposal you will learn that this price is not final, as additional services are paid. Because these services are usually very important to you, you may pay two to three times the amount originally presented. In most cases, the cost of processing a debt relief proposal and ancillary services ranges from CZK 10,000 to 20,000.
We are currently preparing to relieve approximately 500 people from all over the Czech Republic
Debt relief by court is indeed the best solution for many people to get rid of debts, and for many of us we are preparing a debt relief proposal. The advantage for our clients is that we have set the conditions under which anyone can afford to prepare a debt relief proposal because you do not pay for any additional services. First of all, the Debt Advisory Center provides free advice, and this will always be the case in the future. We know insolvency laws in detail and have experience with previous court verdicts. Our clients can be sure that the design is processed correctly and everything will work fine. They also know beforehand how much their monthly payment will be approximately or what part of their debt will be forgiven.
If you want to know if debt relief is right for you and if the court approves it, feel free to contact us. Our consultants will advise you and assess whether debt relief is the best solution for you.