Many credit counseling companies provide debt consolidation services to people who wish to avoid bankruptcy. At best, however, debt consolidation companies usually offer a temporary solution, leaving you owing a lump sum to pay off the debt. At worst, the company may be nothing more than a scam.
In recent years, countless new credit counseling and debt consolidation services have been created. Preying on people who are desperate to pay down their debt, many of these companies make false promises about eliminating debt with one phone call. No debt relief solution is that simple. Beware of such advertisements and speak with an experienced attorney instead. To schedule a free consultation in Illinois, please call The Law Offices of Chad M. Hayward, P.C., at 312-867-3640 or contact us online.
An Attorney Can Protect Your Rights and Your Finances
Debt consolidation companies like to claim that bankruptcy is a bad choice. However, they often charge enormous fees for services you could do yourself, such as writing a letter to your creditors. Other companies may focus on one or two of your accounts while ignoring the rest of your debts. Late fees will continue to accrue, and your accounts may be turned over to collection agencies. In these situations, you may run out of money before any debts are resolved, and your finances will be in worse shape.
Even when a legitimate debt consolidation company helps you, it may serve only to delay the inevitable. You may be unable to pay off the newly negotiated amount. Add up fees, penalties and payments you missed while the company worked on your account, and you may be farther behind than ever.
If you file for bankruptcy, however, all collection actions are halted while you make a plan to repay or discharge your debts. This means that you will not get farther behind on your accounts. Once you successfully complete bankruptcy, your debts will either have been eliminated or paid off, leaving you with a fresh financial slate.
Chicago Bankruptcy Lawyer
Reach us to schedule an appointment at any one of our local community offices by calling 312-867-3640.