Bankruptcy vs. Debt Consolidation [VIDEO]

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Bankruptcy vs. Debt Consolidation [VIDEO]

VIDEO TRANSCRIPT

I have a lot of potential clients that enquire “What is the difference between debt consolidation and bankruptcy proceedings?”

Well, debt consolidation is a type of proceeding which is really just a service that these companies that are out there are providing to certain people struggling with debt. What debt consolidation companies do is they try to consolidate your debt into one payment. They do not eliminate your debt, in some situations they can reduce the interest rate, but it’s all about the size of the debt that dictates your payment… not what is affordable to you.

At the end of the day, bankruptcy proceedings are all about affordability. What can you afford to pay? If you can afford to pay something, you pay something on your debt. If you cannot afford to pay anything, then you do not pay anything.

There’s no interest when we file a type of bankruptcy proceeding, and that’s because we’re using federal law to get the debt managed and under control.

Debt consolidation companies do not prevent creditors from contacting you. They do not free you from any type of collection efforts. It’s just a service… it’s not the law.

So at the end of the day, if you’re looking at finality with respect to managing your debt and getting your debt under control, then a bankruptcy proceeding is a much better approach to take, with respect to these type of cases.

The other thing that people don’t understand is that debt consolidation affects your credit, and in some situations, much more than a bankruptcy proceeding.

So, you need to understand all your options when you’re dealing with these types of programs. that’s why we have clients give us a call. We run them through all their options – not just bankruptcy – but we run them through how debt consolidation works, how debt negotiation works… we want you to have a full understanding of how these types of options move you with respect to your debt moving forward.

If you’re having a tough time right now, pick up the phone. We’re at 214-760-7777. Let’s run through your financial picture, let’s run through your options, and let’s make some good decisions for you.

About the Author:

Mark is dedicated to helping families in North Texas through difficult financial problems. He insists on a personal touch that most bankruptcy attorneys in Dallas are too busy to provide. Call today for a free consultation and speak directly with Mark.

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