Debt Consolidation vs. Bankruptcy - By: Leonard Simmons

Contact a bankruptcy defense lawyer, if you are struggling with debt. One of the most important steps to take, when considering how to deal with your debt relief, is research. Petitioning the services of a debt consolidation company based upon an advertisement on the television may add to the mountain of debts you are already trying to get out from under. Sales pitches and promises are used to get you in the door, but reliable results come from the courts.
A debt consolidation firm may be able to help you communicate with your creditors and lower your monthly payments. However, they cannot prevent your creditors from taking legal action and pursuing the payment of their debts by attacking your assets. Additionally, they cannot re-negotiate the terms of your mortgage or other secured debts in order to assist you in your endeavors to get caught up and maintain your property.
When your home is at risk of foreclosure and your vehicle is at risk of repossession, and you’re struggling to make ends meet, consider a Chapter 13 bankruptcy petition. An attorney can help you review your financial circumstances and compose a repayment plan that will not only help you discharge your unsecured debts, but also put a stop to foreclosure and repossession actions.
A petition for Chapter 13 bankruptcy will also put an end to:

• Debt related lawsuits such as those associated with a Warrant in Debt
• Creditor and collections harassment
• The garnishing of your wages, which in Virginia can be as much as 25% of your weekly income

The difference between a debt consolidation plan and a formal bankruptcy proceeding is that a debt consolidation plan relies heavily upon the participation and voluntary agreement of your creditors. A petition for bankruptcy is an official, legal matter of the courts, and does not require the willing participation of creditors – especially when it can be shown that they deliberately or irresponsibly extended credit to clients whom they knew were incapable of fulfilling the terms of their contractual agreements.
If you are facing insurmountable debt, and you are looking for a long term and reliable solution, contact an attorney to discuss your Chapter 13 bankruptcy options. Debt consolidation companies may offer attractive packages, but they cannot provide you with the solid and proven benefit of asset protection that you will receive through the courts. No voluntary agreement obtained by a debt consolidation firm can prevent your creditors from pursuing the payment of their debts through a Warrant in Debt. However, a petition for bankruptcy will, and it will also provide you with surety and protection through the courts. So, if you’re considering debt relief, consider a petition for Chapter 13, and contact a bankruptcy attorney to discuss your options.

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