Debt consolidation companies have propagated in recent years with promises of achieving debt relief while avoiding bankruptcy. Unfortunately, many of these promises are highly misleading. Too often, debt consolidation companies collect money without providing any real help or services. Clients very often find themselves in far worse situations as before, while losing thousands of dollars in the process.
Don’t wait until this happens to you to contact a bankruptcy lawyer!
At the Bankruptcy Clinic, PC, our attorneys have helped over 10,000 people throughout Southern Illinois achieve debt relief and get a fresh start. We do not give false hopes to our clients, but rather assist them in achieving financial freedom through use of the bankruptcy laws.
We truly can help you move forward with your life. Call us toll free at 888-522-6578 to schedule a free consultation.
How Bankruptcy Can Help
Debt consolidation companies often take advantage of people with loan delinquencies or unsecured debts. They profit by selling people a dream. The truth is, debt consolidation programs offer many pitfalls:
- Debt consolidation companies are often subsidized by credit card companies and thus can only consolidate credit card debt. They typically cannot consolidate medical bills, personal loans or other types of unsecured debt.
- Debt consolidation can do very little to prevent lawsuits and subsequent wage garnishments.
- Debt consolidation companies have little control over creditors. Debt consolidation cannot end creditor harassment, foreclosure or repossession actions.
- Debt consolidation companies may be located anywhere in the United States. Although they purport to have lawyers working for them, these lawyers are rarely licensed to practice in Illinois and can provide no assistance whatsoever to individuals once they are sued.
- One or more credit card companies simply refuse to cooperate or participate in debt consolidation programs, defeating the whole purpose of consolidation.
- Some debt consolidation companies place people into repayment plans with complete disregard of a person’s true budget situation or ability to pay.
- Most debt consolidation companies receive their fees up front. By the time a client figures out nothing is happening as promised, the money they have paid is lost.
- If debts can be reduced through a debt consolidation company, any amount reduced or written off will be reported to the I.R.S. as taxable income. In a bankruptcy, there are no tax consequences stemming from the discharge of debts.
- Debt consolidation companies consistently rank amongst the highest industries for consumer complaints according to the Federal Trade Commission.
Sadly, because of these disadvantages, a large majority of people who seek debt relief through consolidation end up filing bankruptcy anyway.
Filing bankruptcy is the only real option that can immediately stop creditor harassment, stop repossessions and garnishments, and stop home foreclosures. With the Bankruptcy Clinic, PC, you know you are getting reputable attorneys who can help you gain financial freedom. We have the law on our side. We take control of the debts. We have the power to take real action against your creditors and put you on the path toward a fresh start.
Debt Relief Attorney
To learn more about how our Illinois bankruptcy lawyers can help you obtain debt relief, contact our firm online or call us toll free at 888-522-6578. We have offices in Carbondale, Marion and Mt. Vernon, Illinois, to serve you. Evening and weekend appointments are available.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.