Debt Consolidation

Is Debt Consolidation Right for Me?

Debt consolidation companies claim to provide an easy way out of a complicated debt situation. With promises of lowered interest rates, waived late charges, and lower monthly payment rates, it is no wonder that people are sometimes attracted to such plans.

Unfortunately, debt consolidation typically is not as good as it claims to be and proves to be a very costly alternative. Debt consolidation companies are out to make a profit — at your expense.

Pelley Law Office, L.L.P. is a debt relief law firm committed to finding successful long-term solutions to our clients' financial problems. To discuss your non-bankruptcy and bankruptcy options at a free confidential consultation with an experienced financial lawyer, contact us in Plano at 972.608.0335 or in Sherman at 903.813.4778.

What Are the Risks Associated with a Debt Consolidation Plan?

Many people who choose to work with a debt consolidation firm quickly find out that their long-term financial problems are not solved. Debt consolidation companies often charge high fees, placing extra weight on debtors' already-existing debt burden. In some cases, creditors may take legal action against debtors while enrolled in a debt settlement plan. There are also other risks that place extra stress on debtors who are working with a debt consolidation company.

Is Bankruptcy a Viable Option?

Bankruptcy offers protection that debt consolidation plans do not. Many people have the misconception that after the law changed in 2005 they are no longer eligible to file. Nothing could be further from the truth. Almost everyone is still eligible to file bankruptcy. In Chapter 13 bankruptcy, creditors are forced to accept the bankruptcy plan regardless of what percentage of your unsecured debt you are paying. In fact, most of our Chapter 13 clients pay back almost none of their unsecured debt! We encourage you to read our Bankruptcy FAQs page to learn more about Chapter 13 and Chapter 7 bankruptcy. In Chapter 7 bankruptcy, almost all unsecured debts are completely discharged. Under either chapter, creditors must follow the court-ordered bankruptcy plan and completely stop contacting the debtor.

Bankruptcy is a Constitutionally-granted debt relief option that protects debtors and helps them get a fresh financial start.

To learn all of your non-bankruptcy and bankruptcy debt relief options, contact our law firm to schedule a free initial consultation with an experienced financial attorney.

Just a brief note to tell you how appreciative I am of how effective you were in my Bankruptcy Proceedings. I was never worried because I knew I was being represented by the best. Thank you!

-F.B.

I want to express my sincere appreciation for the professional services provided to me during the bankruptcy meetings and the trustee meeting. The courtesy and respect each of you have given me was very comforting because I was very frightened. Your office staff is remarkable…they were always professional and courteous in answering my questions; also very considerate of my fears.

-H.F.

You are good lawyers. You did exactly what you said you were going to do. You always told me the truth, and never made my situation seem better or worse than it was. You are my friends.

-B.R.