Should You Hire a Debt Consolidation Agency?

Nowadays, the airwaves are filled with advertisements for debt consolidation agencies. These companies promise to help people obtain debt relief without resort to bankruptcy.

There are many drawbacks to hiring these agencies however. In many cases, they end up costing more than other alternatives, provide less debt relief and expose the debtor to the possibility of judgments and liens. Before you hire one to work for you, you should learn more about debt consolidation agencies.

In a free consultation, Scott A. Kramer can explain what a debt consolidation agency can and cannot do for you. Contact us to schedule your free consultation.

How a Debt Consolidation Agency Works

A debt consolidation agency takes a fee, and then contacts the consumer's creditors to negotiate reductions in the consumer's debts. While this sounds good, in practice, it exposes the consumer to many risks:

  • The creditor is under no obligation to reduce obligations.
  • The creditor can refuse to cooperate with the agency.
  • Collection activity can continue long after you have paid your fee. You are exposed to the danger of garnishments and judgment liens.
  • Interest and penalty charges on your debts can continue to accumulate. Meanwhile, your credit rating continues to fall.
  • Any debts forgiven become taxable income.
  • Creditors can continue to call and harass you.
  • And many more risks ...

Why Hire a Bankruptcy Attorney?

Working with a bankruptcy attorney on the other hand, provides you with far more protection.

By filing a Chapter 7 or Chapter 13 bankruptcy for you, a bankruptcy attorney can immediately stop the threat of foreclosure, repossession and garnishment. The attorney will work to maximize your exemptions, meaning that in most cases, you can keep your vehicles and personal property. Creditor harassment stops. Debts forgiven in the bankruptcy process are not taxable.

You can get the opportunity to begin your financial life again.

How We Can Help

The Law Offices of Scott A. Kramer has helped thousands of people in the Dayton, Ohio, area obtain debt relief through Chapter 7 and Chapter 13 bankruptcy filings. If bankruptcy is right for you, we will work to exempt as much personal property as we can and reduce as many of your debts as possible.

You can begin again, and we want to help you.

Call for Debt Relief

For a free initial consultation with a lawyer at The Law Offices of Scott A. Kramer, call 937-222-1700 or contact us online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.