The minute your case is filed, creditors MUST stop calling you and harassing you. The bankruptcy protection or automatic stay prohibits creditors from contacting you at all. This protection stays with you until you receive a discharge, which eliminates most debt.
With a debt consolidation company, they will charge you tons of fees that will eat away at the amount applied to pay off your balances. Debt consolidation companies cannot protect you from being sued by the creditor or having a lien placed on your home. Many clients find that even after paying money to the debt consolidation company for over a year, their balances on their credit cards have increased instead of decreased.
Even if you make a good living, you may still struggle with paying off your credit card debt and other loans. Chapter 13 bankruptcy is a solution that allows you to pay what you can afford back and at the end of the plan have a clean slate to start over. Many people have found that their Chapter 13 plan payment is much lower than what they were paying the debt consolidation company and they are able to deal with all of their debt, not just some of it.
Contact us today to learn more about how you can eliminate your debt with a solution that works best for you.