Bexar County Texas Bankruptcy Attorney
If you watch television, you have probably seen commercials advertising debt consolidation agencies. These agencies promise to consolidate your payments, lower interest rates and lower your monthly payments. The list goes on and on.
Many people are confused about debt consolidation agencies, and what exactly their services include. With an abundance of advertising clouding our perceptions, it is easy to be misinformed. But learning all you can about these agencies — as well as bankruptcy — can help you make proactive decisions about your financial future.
At Rosenbaum Law Offices in San Antonio, we offer a confidential and free consultation where we can discuss your options for seeking debt relief. This may or may not include Chapter 7 or Chapter 13 bankruptcy. Contact us today to set up a time to meet with a bankruptcy attorney.
The Dangers of Debt Consolidation Agencies
Both debt consolidation agencies and bankruptcy law firms are designated as “debt relief agencies.” This is where the similarities stop. See comparison chart at Debt Consolidation.
One of the dangers of working with a debt collection agency is the fact that most of your payments go to the agency — and not toward settling your debt. In contrast, in bankruptcy, you are paying the U.S. government.
Debt negotiation/consolidation only settles unsecured debt. So, big-ticket items like your mortgage or car loan cannot be consolidated. Bankruptcy, by contrast, can stop foreclosure and repossession.
One of the main benefits of bankruptcy is that it stops creditor harassment. When bankruptcy is filed, an automatic stay goes into effect, banning all collection actions by creditors. With debt consolidation, you will not be immune from harassing phone calls, letters and other creditor actions.
For more information about the benefits of bankruptcy and the risks of debt negotiation, contact us to schedule a free consultation.