Chicago Bankruptcy Lawyers & Attorneys

Why would you pay a debt consolidation company a 15% administration fee to help settle your debts? If you’re wise, the answer would be that you wouldn’t. Firstly, the debt consolidation company has no real legal authority to bind creditors to accept less than what is owed. The cases are strictly voluntary and many creditors do not play ball. Secondly, the services being provided by debt consolidators is something that you could, in fact, handle yourself. Lastly, you have little control when you sign the debt consolidator’s limited power of attorney. If you need a Philadelphia lawyer to read and understand the contract, it cannot be written to favor the debtor.

With regard to fees, if your placed debt is over $23,500.00, you are paying a higher total fee than if you filed for Chapter 13 bankruptcy. Word to the wise, debt consolidation is often a mistake, eventually leading to either a Chapter 7 of Chapter 13 bankruptcy. Take my simple, yet profound advice: Meet with an experienced bankruptcy attorney prior to entering into a debt consolidation program with an unknown, out-of-state entity. You may be able to save yourself from lost wages, heartache, lawsuits, garnishments, repossessions and foreclosures. There is a reason why 41 state attorney’s general are lobbying Congress to toughen the laws related to debt consolidation companies. If it sounds too good to be true, it most certainly is too good to be true.