What Consolidation Companies Do
Consolidation companies trick consumers into thinking they can pay back their debt at a significantly reduced cost without facing any consequences. They allow you to make a lump sum payment after choosing the creditors you wish to pay back. Money is then deposited into an account with the consolidator on a weekly or monthly basis.
Once the total settlement amount is saved up, a debt consolidator attempts to settle the debt with third party creditors. This takes place after the debtor stops paying his bills so that they will go to collections. The expectation is that the third party collector will not have proof of the original debt and will accept the settlement amount. What winds up happening oftentimes is that the third party debtor indeed does have proof of the original debt.
When Debt Consolidation Won’t Help
Eventually, many debtors are sued by collectors. All the while the debtor is paying thousands of dollars in service fees to the consolidation company and fails to resolve the debt. When a debt consolidator can no longer help you, they recommend bankruptcy.
Skip the trouble and come straight to our office to discuss filing a Chapter 7 or Chapter 13 bankruptcy in Louisiana. Our attorneys fight to protect your interests at each turn and will file your bankruptcy with care on your behalf. You can expect results in just a few months.
Some of the E. Orum Young Law Firm lawyers are members of the National Association of Consumer Bankruptcy Attorneys. Call (318) 450-3192 to explore bankruptcy today. Your first consultation is on us!