Three Ways Bankruptcy Is Better Than Credit Counseling

When consumers have more debt than they can service, there are several options for relief. It might be that your lender is willing to work with you to lower your payments, or at least let you put the past due amounts at the end of your note and consider the obligation current as long as you maintain payments. Or, you might be able to refinance your house and use the equity to pay off high interest rate credit cards, which frees up money each month by reducing the total amount you are paying out monthly. You might also be considering credit counseling or bankruptcy, and wonder which option makes the most sent for your situation.

Between these two options, it can be difficult to tell which is best, and there is a lot of information out there on both sides of the equation. Our office works with distressed debtors every day, and in our experience, bankruptcy is the answer. Three ways bankruptcy is better than credit counseling include:

•         A credit counseling agency can work with your lenders, but that does not necessarily 

       mean your lenders have to take an offer that is made. In bankruptcy, the courts dictate what is paid back and what is not, with very little room for objection by a lender.

•         Bankruptcy acts as an immediate stop to any collection lawsuit or wage garnishment, which gives you instant relief. But credit counseling can take time, and during the interim you will still be responsible for payments.

•         Some lenders view the hit to your credit score from credit counseling the same way as a bankruptcy. So, there is no measurable benefit to opting for credit counseling if your credit rating is on the top of your list of concerns.

We have helped people get out from under burdensome debt, and we can help you too! Once you have a plan in place, you will feel instant relief from the stress that goes along with being unable to pay all of your bills and look forward with positivity. If you are struggling to keep your head above water financially, call us today to learn your options. Bankruptcy is a beneficial legal tool that will help you to make a fresh financial start.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.