Debt Relief Agency

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A debt relief agency is any person, company, or institution that provides advice, information, counsel, and/or other assistive services to a person who is contemplating, or filing, for bankruptcy in return for payment. Under the U.S. Bankruptcy Code, lawyers do not fall within the specific exemptions of the definition of “debt relief agency” and can be considered an agency if they offer services such as legal representation regarding a bankruptcy case or proceeding. Debt relief agencies are also subject to restrictions laid out by section 526 of the Bankruptcy Code. For instance, a debt relief agency must not advise a person to incur more debt, misrepresent the benefits and risks of that person’s situation, and must not make an untrue or misleading statement in a document relevant to the case. 

[Last updated in July of 2021 by the Wex Definitions Team]