Texas Debt-Relief Firm Gained Dubious Reputation, Duped Consumers, Filed Bankruptcy

TaxMasters, with their somewhat unrealistic claims of solving taxpayers’ IRS problems, has been making headline news. The alleged debt-relief firm and its CEO, Patrick Cox, has declared Chapter 11 bankruptcy in U.S. Bankruptcy Court in Houston, Texas, listing assets of less than $50,000 and liabilities of between $1 million and $10 million.

In 2010, Texas Attorney General Greg Abbott filed a lawsuit against TaxMasters, averring that some of the company’s claims were false. In an article on www.chicagotribune.com by Nick Brown, Abbott said that the firm “led consumers to believe it would begin working on a case immediately, when in truth it would delay work until a client’s fees were fully paid — even if that meant missing IRS deadlines. The company also hid policy terms, according to Abbott, who reported receiving more than 1,000 customer complaints.”

TaxMasters alleged that they were scheduled to receive up to $25 million in equity financing from a micro-cap financier; however, in a very recent filing with the U.S. Securities and Exchange Commission, TaxMasters said the funding had been ‘unexpectedly delayed’ and that they did know when or if the funds would be forthcoming.
The firm has put four total units into bankruptcy, two of which it plans to liquidate under Chapter 7 bankruptcy.

Your overwhelming debt is a serious matter that you need to deal with now. Filing for Chapter 7 or Chapter 13 personal bankruptcy is complicated. You need a knowledgeable and experienced bankruptcy attorney from Jacoby Meyers Bankruptcy Law at your side to guide you through every step. Log onto www.jacobymeyersbankruptcy.com or call toll-free Monday thru Saturday and evenings at 800-260-1402 for your free initial consultation.

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