Bankruptcy or Debt Consolidation: Which is Right for Me?
It may be tempting to look to debt consolidation when faced with bills you are unable to pay rather than filing for bankruptcy. The unfortunate reality is that many who choose the debt consolidation route are worse off than before they started.
Get Legal Guidance from Skilled Los Angeles Bankruptcy Attorneys
Oaktree Law fully understands the ins and outs of the bankruptcy process and works hard to achieve each of our clients’ goals with regard to their financial well-being. As a law firm rated A+ by the Better Business Bureau, we provide the legal guidance you need because we understand what you are going through when it comes to unmanageable debt. Our Orange County bankruptcy lawyers can offer you hope and way out from under your debt.
Debt Consolidation: Risky and Fewer Benefits
The big problem with debt consolidation is that they offer you as the debtor any leverage—your creditors thus have no incentive to agree to a consolidation of your debt. Assuming the debt consolidation company works in good faith, you may be forced to wait for them to help you, while interest build on your debts.
Other potential drawbacks to using a consolidation service include:
- Costly upfront fees which could offset savings from lower rates
- Most consolidators do not negotiate on the amount you owe
- Creditors are not barred from harassing you
- Your secured and unsecured debts are often mixed in the process
Our Los Angeles bankruptcy attorneys on the other hand are backed by the federal bankruptcy code. Filing for bankruptcy can provide many advantages to debt consolidation. Bankruptcy can eliminate or reduce your debt, prevent interests and penalties, put a stop to creditor harassment, and suspend foreclosure, repossession, and wage garnishment.
Knowledgeable Bankruptcy Attorney Serving Los Angeles
Although not everyone is qualified or best served by filing for bankruptcy, those who may be helped by it typically do themselves a disservice by filing trying to consolidate their debt. For those in serious debt and unable to make their payments, the protections offered by bankruptcy make it a far better option.
Trust Oaktree Law to consistently work on your behalf in working towards solving your debt problems. Our bankruptcy attorneys in Orange County and Los Angeles know exactly how to best resolve your situation.
For your free consultation, contact us or call the firm at (562) 219-2979 today!