Debt Consolidation vs. Bankruptcy
Exploring Your Options
Many individuals facing overwhelming debt fear the negative stigma of bankruptcy. Concerned bankruptcy will hurt their credit report, they search for alternatives, such as debt consolidation. To understand the differences between the two debt reduction methods, consult with an experienced lawyer.
My name is Maureen O’Malley. At my office in Reston, Virginia, I provide trusted advice about debt relief options. I work to ensure my clients understand both Chapter 7 bankruptcy and debt consolidation, giving them the information necessary to make informed decisions.
Debt Consolidation Promises Much, Delivers Little
When you are in financial distress, debt consolidation can be tempting. These businesses promise to negotiate with your creditors for reduced payments and interest rates, paying off your debt quickly.
Unfortunately, debt consolidation advertisements fail to mention this method does not provide legal protection. Problems include:
- Creditors can continue pursuing debt collection
- Creditors can file legal action against you
- Creditors can continue to call you for payment
- Debt consolidation companies can fail to pay your creditors with the money you give them
- Your credit can still be damaged
- The balance of your debt may be taxable
People who choose this method often find themselves still in financial trouble, needing to file bankruptcy after losing money in debt consolidation efforts. While there are some good debt consolidation companies in operation, it is difficult to tell which to trust and which to avoid.
Bankruptcy Provides Legal Protection
When you file for bankruptcy, the law protects you. Creditors must communicate with your attorney, leaving you in peace. Further, garnishments, foreclosures, threatening phone calls and repossessions stop immediately. To discuss further benefits of bankruptcy contact my office.
Protect Your Financial Future
The debt relief solution you pursue has a major impact on your financial future. Contact me online or call me locally at 703-483-9639 or toll free at 888-353-2098 to further discuss the differences between bankruptcy and debt consolidation. My office is conveniently located off Sunrise Valley, between Wiehle and Reston Parkway.
I am required to disclose that I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.