Why Is Bankruptcy Better Than Debt Consolidation Almost All Of The Time?
Debt consolidation companies (who are not licensed attorneys) claim to provide an easy way out of complicated debt situations. 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.
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 consolidation 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 .
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.