Debt Relief the Right Way
These days, the airwaves are filled with advertisements from debt consolidation agencies. These companies promise to provide debt relief to individuals without bankruptcy. You should be aware though of the drawbacks of relying on these agencies for help. Sometimes, working with a debt consolidation agency can actually put you in a worse position than you were before.
Beware of Debt Consolidation Agencies
There are two types of debt consolidation agencies:
- Credit Management model — the agency negotiates with creditors to reduce debts or get lower interest rates.
- Debt Consolidation model — you make a monthly payment into a trust account which then is used to pay off your debts.
Generally speaking, working with either type of company is a big mistake. For one thing, neither model provides protection from creditors. Even if a creditor agrees to reduce a debt or offers lower terms, there is nothing to prevent the creditor from filing a judgment against you at some later time.
You should also be wary of various mortgage rescue scams which promise to help you keep your home without bankruptcy.
Why Bankruptcy is the Better Solution
The bankruptcy laws were enacted to protect people's rights and help them get a fresh start. They provide protection against judgments and repossession actions from all your unsecured creditors, not just some. You can keep most or all of your property without fear that you will lose it. With bankruptcy, you know exactly how much debt relief you will get and over what time frame — and you will know the full costs upfront.
Leen & O'Sullivan, PLLC is an experienced bankruptcy law firm that has helped thousands of people obtain debt relief. We are attorneys — and know how to take full advantage of the bankruptcy laws for our clients' benefit. We will work to obtain maximum debt relief for you, while protecting your rights and helping you to keep as much of your property as possible.
Free Consultation — Call Today
Before you sign up with a debt consolidation agency, talk with Leen & O'Sullivan, PLLC in Seattle, Washington. For a free initial consultation with a lawyer, contact our firm.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
