Is it a good idea to hire a debt consolidation company instead of filing for Bankruptcy?
Bankruptcy is used when you are insolvent, meaning you have much higher debt than your income can payoff in a reasonable amount of time.
Debt consolidators can chip away at your debt, lower interest rates, even reduce principal balances, but they rarely discharge entire balances, as is often the case through bankruptcy.
Bankruptcy will have serious credit affects though. Dependng on how you file it can stay on your credit report for years, anchoring your credit score and affecting everything from your ability to obtain loans to buy a home, car and life insurance, and get future credit cards.
Make sure you speak with a bankruptcy attorney who has credit counseling experience. He or she can point you in the right direction and assist you with either one.
Not if you want a fresh start quickly! Debt consolidation companies are typically based in different states and are not familiar with Texas law. Some companies offer empty promises for a significant amount of money and fail to provide any relief. Many consolidation companies have been investigated by the federal government for running scams and abusing numerous state and federal laws. Several groups have also been reported on Dateline NBC and 60 Minutes. Hiring one of these companies can be a huge mistake. Even if the company is reputable, some creditors and lenders may refuse to participate in the debt consolidation process, which means you lose the money paid to the company and still have debt that needs to be discharged. Debt relief solutions provided by our firm, including Loan Modification, Loan Forbearance, and Bankruptcy, will likely cost far less and actually help you erase your debt without any strings attached. For an overview of our debt relief services in Houston, Texas, pl
