Interested in Debt Consolidation? Get Advice from an Attorney

Debt consolidation vs. Bankruptcy

Are you drowning in debt? Consolidation could be the solution, allowing you to pay off what you owe and get on the road to financial stability. But before you make any decisions, talk to a qualified bankruptcy attorney.

Working with a debt consolidation company can be risky, and many people who do come to regret the choice. With expert advice, you can protect your rights and interests – and since many bankruptcy attorneys offer free, no-obligation consultations, you really have nothing to lose.

Problems with Debt Consolidation Companies

Debt consolidation companies are out to make a profit, and they achieve this by charging fees for their services. However, they aren’t always upfront about their fees – and in some cases, the agencies are quite dishonest.

These companies lure you in with the promise of combining your bills into one affordable monthly payment, which might be what you need to get back on your feet. But here’s what could happen:

  • You might be required to pay a large sum of money upfront to begin the debt consolidation process.
  • Your creditors may not start getting paid for quite some time, and while they’re waiting, you can expect continual phone calls, texts, emails and letters.
  • The company fees may be deducted directly from your monthly payments, leaving little to distribute among your creditors and putting you further in debt.
  • At any point, the company could close, and holding them accountable for your worsening financial situation may be next to impossible.

Debt Consolidation through Chapter 13 Bankruptcy

You can achieve your goal of securing financial stability by consolidating your debts, but filing for Chapter 13 bankruptcy is a smarter approach than working with a for-profit consolidation company.

A qualified bankruptcy attorney can explain the details, but on a basic level, Chapter 13 bankruptcy involves reorganizing debts to be repaid over the course of three to five years. Filing a claim brings creditor harassment to an immediate stop, and at the end of the payment plan, certain debts are discharged.

As for the amount of the monthly payments on a Chapter 13 plan, that varies – but an experienced bankruptcy attorney will make sure that the total is affordable.

Explore All of Your Debt Relief Options

Consolidating your debts through Chapter 13 bankruptcy may be the best way to get a fresh financial start. But you have other debt relief options, and a qualified bankruptcy attorney can help you weigh the pros and cons of each approach. With their advice, you can make the decision that’s right for you.

If you’re in Salt Lake City or the surrounding northern Utah area, the Law Office of Davis & Jones, P.C., is ready to provide the information and legal advice you need. Before you sign on with a Utah debt consolidation company, contact our office and schedule a free, no-obligation consultation with one of our highly skilled and experienced bankruptcy attorneys.