The SC Bankruptcy & Consumer Law Blog has a post on this subject titled Better Than Bankruptcy? Look Out For These Scams!. I have not heard of the scam Ms. Schelin writes about which does sound like a variation on the old credit repair scam. I would not be surprised that this scam starts showing up in Indiana, so beware. If there were better solutions to credit card debt than bankruptcy, then there would be no federal bankruptcy law. I cannot say it any better than Ms. Schelin:
Don’t let your guard down. No one - literally, no one - has any kind of special “in” with your creditors. If you’ve tried to renegotiate your terms (and you should), and were unsuccessful, then move on to consider other alternatives. Credit counseling - real credit counseling, with an appropriate and well-respected nonprofit organization (and here’s a hint: not all nonprofits are well-respected) - might be one answer. Filing for bankruptcy might be another. If you think you’re there, speak with a lawyer today.