If you are reading this you are probably considering debt consolidation or filing for bankruptcy. You are probably looking at both options and trying to figure out which option is best for you. In order to understand each let’s take a look at both processes:
Debt Consolidation:
Debt consolidation is a way to have one monthly payment on your bills. In a debt consolidation, you will have one loan that you need to pay back in order to cover all of your bills.
Some debt consolidation companies also give the option of doing debt settlement
Many people think that it’s great because they can put a little money into an account each month and the company will settle the debts for you. Unfortunately, there are many scams out there. I can’t even begin to tell you the countless number of clients who have come to me after getting ripped off from these companies and are back in the same position they started.
Bankruptcy:
If you are able to qualify for a chapter 7 bankruptcy which is also considered a liquidation then I usually recommend this to most clients. A chapter 7 bankruptcy allows your debt to become erased. There is no monthly payment plan and there is no scam. The process can take as little as 3-4 months and boom your debt is erased.
Many people always come to me and are just worried about the idea of “bankruptcy.” It is important to understand that bankruptcy is a tool to help you get back on your feet not hinder you. If you look at the long list of people who have filed bankruptcy, including our president you can see that bankruptcy does not mean your life is over.
It is important to speak with an experienced bankruptcy attorney to see if you qualify.
Before signing up for any debt settlement or debt consolidation plan it is important to do your research. Check reviews, check if there have been lawsuits filed against the company.
We are a New York and New Jersey Bankruptcy law firm. Call us today to schedule a free consultation.