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Bankruptcy vs. Debt Consolidation

Choosing the Right Debt Relief Solution

Debt consolidation companies make tantalizing promises. They advertise that for an up-front fee, they will get you out of debt within a short period of time. Unfortunately, they are often unable to deliver the promised results, potentially leaving you without relief and further in debt.

At the Law Offices of Michael H. Johnson, we want to ensure you know the facts about both debt consolidation and bankruptcy before determining the best debt relief solution for you.

Debt Consolidation Companies Cannot Guarantee You'll Be Debt Free

Debt consolidation companies are not able to guarantee they can eliminate all your debt. These businesses have no legal authority to force creditors to accept less than the amount due. Further, they cannot take action regarding mortgage debt.

When you file bankruptcy, however, all debt included in the filing will eventually be discharged. Also, an experienced bankruptcy lawyer can help address various real estate concerns, such as foreclosure defense and cramming down the mortgages on investment properties.

Creditors Can Still Harass You With Debt Consolidation

If you hire a debt consolidation company, creditors can keep pursuing collection actions. The harassing phone calls and demanding letters may continue. However, when you file bankruptcy, all creditor collection efforts must immediately stop. You will be free to breathe easy while you work on rebuilding your credit.

In Bankruptcy, You Know All Fees Up Front

Some unscrupulous debt consolidation companies charge excessive fees when you sign up with them. However, they may use those fees to pay their employees and fund their services, rather than pass the funds on to your creditors. In the meantime, creditors can still take action against you, such as foreclosure and repossession.

When you file either Chapter 7 or Chapter 13 bankruptcy, you know exactly how much you'll pay for attorney fees, as well as any other relevant payments. Further, you are protected from creditors by law, meaning foreclosures and repossessions must stop.

Consult With a Fort Lauderdale Bankruptcy Lawyer

To learn more about how bankruptcy can help you make a fresh financial start, contact us online or call us at 954-535-1131 or 561-353-1131.

Our firm maintains offices in Fort Lauderdale and West Palm Beach. We offer evening, weekend and off-site appointments on request. Our phones are answered by an answering service 24 hours a day/7 days a week.

We accept credit cards. Payment plans are available upon request.