30th Nov 2017
Around this time of year we tend to increase our debts and start the new year determined to find a debt solution. Many will start 2018 by exploring the options available to them to start the journey towards living debt free. Debt consolidation service providers are one of those options, you’ve probably seen them advertised around Texas. These companies offer to work with your creditors in order to consolidate your debt and therefore significantly lower the monthly repayments. Sounds great right? Well, the truth is, like many things that sound too good to be true, these companies promises often are – check all the ‘strings attached’ before signing anything!
In our free financial consultations Attorney Rod Kemsley will help you explore the various options to find the debt relief strategy that is right for you. We are bankruptcy attorneys, but we never suggest filing for bankruptcy unless it is 100% in our clients best interests in their particular personal circumstances. That is our commitment to our clients – to find the best solution for them personally, and to guide them every step of the way.
Is Debt Consolidation Right for You?
If you do decide that a debt consolidation service is the right option for you, it is important to find a reliable and trustworthy firm who will act in your best interests, working with your creditors to consolidate your debt and negotiate lower repayments.
The key question is: How will they convince your creditors to agree to this plan?
And here’s the kicker – it is often the case that debt consolidation services have no leverage and therefore no way to give lenders an incentive to agree to debt consolidation. We’ve heard examples of clients waiting months for a consolidation agreement before finally learning that the company is unable to assist them. They are then left with all of the debt plus additional interest and possible fees for missed payment deadlines. Not to mention any fees paid to the debt consolidation company. The service fees can be quite extortionate and a much worse option than a Chapter 7 or Chapter 13 bankruptcy.
My previous use of the phrase ‘acting in good faith’ was not without good reason. Unfortunately these debt consolidation companies are mostly unregulated. The truth is that you could be putting yourself at risk by trusting them with your finances. Bankruptcy Attorneys are regulated by the federal bankruptcy code. When you file for bankruptcy your repayment plan is enforced by federal law, your creditors MUST stop harassing you.
Bankruptcy is not necessarily the right choice for you, but if it is, hiring a debt consolidation service will be a backwards step.
If you have any questions regarding debt consolidation or bankruptcy, please give me a call and schedule a free, no obligation, consultation to discuss your concerns and we can work together to try and find the right individualized approach for you.
Please contact me at 281-847-4345 or firstname.lastname@example.org. I look forward to hearing from you soon.