Why not consolidate or use debt counseling rather than file for bankruptcy?
Consolidation from these companies that advertise on TV and radio are basically offering repayment plans that are doomed not to succeed because they keep you in huge debt. They often shade the truth about how much of your debt they are really paying back. You may actually end up paying more in the end than what you originally owed and you may receive law suits from some of the creditors that were supposedly being paid off. They will have you in 5-year repayment plans that can easily damage your credit because you will still owe creditors. Be cautious if you are considering using a credit counselor. Also read about the problems of unscrupulous companies in the credit counseling industry and the action the IRS has taken against “non-profit” credit counseling groups following widespread abuse. If filing a Chapter 7 instead of being scammed in a consolidation plan from a “non-profit” consolidator, Chapter 7 discharges debts like credit cards, medical bills, gym memberships, parking tickets
