The Washington Post recently reported a recent GAO investigation finding that many debt settlement firms are misleading consumers (see this article: Debt-settlement firms misled consumers, GAO report says). You have seen the commercials that make the programs appear to be government sanctioned and making wild claims about the ability to settle debt. The reality is these firms charge large, up front fees, mislead consumers as to the reality of debt settlement, and end up forcing people into bankruptcy after the unwary consumer wasted thousands of dollars on a debt settlement program that was never going to work in the first place. (more…)