There is a phone message on my desk and I had better call them back. The potential client on the other end of the phone is very upset. It seems she received a letter from a creditor about a lawsuit and ignored it. Now her bank account has been frozen and they don’t know what to do. She says that the debt is from a credit card account and she had been told by a friend that the credit card company can't be permitted to attach her bank account.
There may not be two more widely misunderstood concepts amongst the general public than the concepts of “bankruptcy” and “debt settlement." However, before weighing the pros and cons of each, it is important to first lay out some parameters for the discussion: