A bankruptcy attorney can protect your interests in the event of a lawsuit.Filing for bankruptcy provides federal bankruptcy court protection and many other advantages.In response to any lawsuit, a debt consolidation company is unlikely to help you.Instead, they will say they are "not lawyers" and will do nothing to protect your interests.At the law firm of Simon, Fitzgerald, Cooke, Reed and Welch, we want you to be well-informed regarding all your options and how each one applies to your particular circumstance.Our firm has been practicing bankruptcy law for well over 50 years.Debt consolidation involves using a new source of credit to pay off multiple existing debts.Benefits of debt consolidation include making your payments easier to keep track of, lowering your interest rate, lowering your monthly payments, lowering your long-term interest expense and increasing your credit score over time if done correctly.
If you don’t follow your repayment plan, you could end up right back where you started – or possibly worse.
However, the key word here is "can." If you go to a debt consolidation company, they will make an agreement with you to negotiate with your creditors into getting one monthly payment with a fixed interest rate. However, many and maybe most times debt consolidators are not able to get all creditors to agree.
If just one creditor is left out, they can sue you for your liabilities.
Debt consolidation does not and almost never does reduce the debt that you owe. We're not here to talk you into bankruptcy, or talk you out of the alternatives, but to give you the facts of both.
Our attorneys can represent your interests in debt consolidation or loan modification. Call us today at 888-341-8091 to discuss bankruptcy or debt consolidation.