Debt Elimination Scheme Law and Legal Definition
A fraudulent method to eliminate debts is known as a debt elimination scheme. Usually the scheme is advertised in a way to attract debtors. Debtors are drawn by the small fee charged for the service. The results that may arise from such a fraudulent scheme are:
1. individuals will lose money and property;
2. damage debtor’s credit rating; and
3. debtor incurs additional debt.
A creditor can initiate legal action against the debtor for the fraudulent attempt to eliminate debt. There is also potential liability for a charge of theft.
