Multiple creditors, single debtor, nonstop nightmares

What makes lawyers like Timothy Burnette and Monarch Legal Group questionable?

While many companies claim that their debt resolution or debt consolidation program will help people avoid falling into deeper debt, the ones I’ve come across have ended up being bigger nightmares than the debt itself.

Why are debt consolidation programs so initially appealing?

Debt consolidation programs, also referred to as debt resolution programs, have a sales pitch that’s initially appealing to those in debt. The idea behind these programs is that instead of debtors dealing with various creditors who are dunning (demanding payment of a debt) them for various amounts, the debt consolidator works with various creditors while collecting one monthly payment (often a large sum) from the debtor. The program then promises to negotiate on behalf of the debtor with these creditors, and then uses the monthly payments that the debtor has been sending to resolve the outstanding debts.

However, what usually happens is that the debt resolution company keeps the monthly installments without paying down any significant amount of the debt. Or, it pays down some of the debt and charges ridiculous fees for so-called services. In some cases, it may do a combination of both.

These programs are popular because people may have multiple debts in various amounts owed to numerous creditors, but they only have so much money. But if the debt consolidation program tells them to pay $500 per month (as an example) to pay off a $20,000 debt, they may be able to juggle that rate better.  If they stick with this program long enough, everything will be paid off—eventually.

The problem is “eventually” doesn’t happen because the debts never get paid off. Why? The resolution company has kept the your money for itself.

In my opinion, you should stay far away from these types of outfits, especially multiple creditors chasing one single debtor.

Here’s a real-life example involving Monarch Legal Group and a lawyer named Timothy Burnette.