A plan that is advertised as a way for an individual to eliminate various types of debt simply by paying someone a small fee compared to the amount of debt to be eliminated. These schemes are fraudulent. As a result of using a fraudulent scheme, individuals will lose money, could lose property, may incur damage to their credit rating, and possibly incur additional debt. In addition, a creditor may take legal action against an individual to resolve a fraudulent attempt to eliminate debt. It is also possible for the victim to have identify theft occur by participating in such a fraudulent scheme.
- Browse Related Terms: Business Day, Bylaws, Debt Elimination Scheme, Domicile, Incorporation, Limited liability company, Nonprofit, Recapture, sales tax, Sole proprietor, Tenancy-in-common
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