Debt Consolidation Problems
Legal Guidance From Our Indianapolis Bankruptcy Attorneys
If you are living with what seems to be insurmountable debt, you may be tempted to seek help from a debt consolidation company. Instead, you should consider turning to Jackson & Oglesby Law LLC for assistance as you file for bankruptcy. Debt consolidation companies often lure consumers with empty promises. They often make the false claim that when a consumer makes a monthly payment to the company, the money goes directly toward paying off creditors.
Problems With Debt Consolidation in Indianapolis
While various problems exist regarding debt consolidation, our Indianapolis bankruptcy attorneys strive to warn clients of the primary dangers of these organizations and their harmful business practices. First, many debt consolidation companies will not work with you until you have defaulted on your loans. When you default, however, you can face fines, penalties, higher interest rates and aggressive collections tactics.
Second, you may be under the impression that your monthly payment to the debt consolidation company is used to pay off your creditors. Typically though, the company places a portion of your payment in an account and the remaining amount goes toward the company's fees. Money in the account is not dispersed to the creditor until a certain amount has accumulated.
It is crucial that you understand what happens when a consumer enlists the help of a debt consolidation company before you sign up for any such services. In many circumstances, the individual completes debt consolidation with more debt than when he or she started. The debt consolidation company gets his or her money and the consumer is left searching for help elsewhere.
At Jackson & Oglesby Law LLC, our Indianapolis bankruptcy attorneys encourage you to become educated concerning your options for obtaining debt relief. Chapter 7 and Chapter 13 bankruptcies are viable options and bankruptcy laws are set in place to protect you rather than to take money from you.
Contact us today to discuss debt settlement!