Cherry Hill, NJ Debt Lawyer Explains the Differences Between Consolidation and Bankruptcy

Debt consolidation companies can offer an alternative to bankruptcy; however, there are many things to consider. First, make sure the company is well established and even nonprofit. Do not engage with a debt consolidation or debt settlement company that most people have never heard of and especially if there is no physical locale for the company. While this may seem like a basic idea, there are countless debt consolidation companies out there that are only based online. If problems were to arise, this only makes it more difficult.

If you are considering debt consolidation or debt settlement, consider the benefits of bankruptcy instead. I am attorney Joel R. Spivack. I have been providing debt advice for clients throughout New Jersey since 1995. I can discuss with you, in a free consultation, the benefits of bankruptcy vs. consolidation. I never push bankruptcy on anyone. Instead, I simply keep people well informed of all their options and advise them as to the best plan of action. Contact an experienced Cherry Hill, New Jersey bankruptcy attorney today.

What Are the Benefits of Chapter 13 Bankruptcy vs. Debt Settlement Companies?

If you are able to find a credible and legitimate debt settlement company, it may be able to reduce your interest rate. However, you are still going to pay interest. This is where the benefits of Chapter 13 bankruptcy often outweigh debt consolidation companies. In a Chapter 13 repayment plan, you generally would not have to pay interest.

Furthermore, with Chapter 13 you are dealing with all of your creditors at once and together. In a debt settlement/consolidation, not all creditors are required to, or even willing to, agree to participate. For example, you may have five creditors involved and only one or two may agree to be part of the debt consolidation. In bankruptcy, even if a creditor does not want to become involved, that creditor does not have a choice under the authority of bankruptcy courts. That is why you really only should go the debt/consolidation route if you have just a few creditors. Otherwise, be wary of the potential results.

Contact the Law Office of Joel R. Spivack in Cherry Hill, NJ and Schedule a Free Initial Consultation Today

My office is open weekdays from 8 a.m. to 5 p.m. and offers free parking. Call today at 856-861-6203 or toll free at 866-488-2196 for a free initial consultation with a Cherry Hill bankruptcy lawyer. You can also contact me by e-mail.

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