There are many companies who make their living promising to help people recover from severe debt problems. They pledge to eliminate massive credit card debts or reduce student loan payments if the debtors pay a fee for their services. Testimonials from prior clients of these companies seem to indicate that if the person opts for this particular debt relief organization, their debt problems will be over in almost no time.
However, the reality of the situation is almost something entirely different. Many of these companies do not deliver on their claims. Debtors are required to give nearly all of their available funds to the debt relief entity, letting bills go unpaid. When the creditor then comes after the debtor for the past-due balances, the money is gone, and the debtor is left facing potential lawsuits and wage garnishments. Debtors must then file for bankruptcy, as there will be no other option to help them regain control.
Recently, there has been a new trend among debt relief companies that is concerning to some officials. Some of these organizations are targeting individuals with high student loan debts. They try to attract people who may have attended expensive colleges or trade schools and were unable to find jobs when they graduated. They promote several programs that may be available to the debtor, and recommend some of these to help the individuals get out of debt.
What many debtors do not realize is that these programs, in most cases, are free. Instead of paying large fees to these companies, the debtors would be able to address their debt independently rather than working with a debt relief service.
There are other options available. Debtors may file for bankruptcy, which provides the time needed to regroup. It can stop the collections actions, and help the debtor repair his or her troubled financial situation. It may even allow the individual to remain in the family home or keep retirement assets.
If you have questions about dealing with your debt, you should reach out to an experienced bankruptcy attorney in your area. It is important that you speak with someone that can provide you with an overview of all of your options, so that you can make a decision that allows you to feel completely confident that you will be able to control your debt problems in the future.
Your situation will be entirely different from friends and relatives who may have experienced similar debt issues. Their solutions may not be practical for you, and if you simply opt for a one-size-fits-all approach, you could lose assets that are very important to you and your family. Do not make any decisions without first talking to us at Harold Faletti Law Office (303) 438-8477.