Should I negotiate with the creditors?
Under certain circumstances it can make sense to work with a debt counselor or debt consolidation company. However before you sign any agreement ask a bankruptcy attorney for his/her opinion about your case. As a matter of fact many of the people who started out with a debt consolidation company come to us for advice. In many cases the debt consolidation company was not able to stop all the creditors from collecting and only prolonged the problems.
Rinne Legal reviews your case in detail in the free consultation. If based on our experience we think debt negotiation will work in your particular case we suggest you do that and assist you with it. In fact on a regular basis we tell clients not to file bankruptcy because we know of an alternative after reviewing the client’s case.
Our consultations are free of charge and give you a knowledge advantage whether you decide to file or not.
Before you call a credit consolidation company read the following:
The U.S. Trustee and the Justice Department concluded that many of the so called non-profit debt consolidation companies engaged in questionable tactics charging enormous fees and far too often not resolving the client’s financial problems.
Often debtors who hired a debt consolidation company are being sued by creditors who refused to participate in the debt consolidation without the debtor knowing of this facthat was supposed to go to the creditors.
The debt consolidation company is mostly not run by attorneys has no power to stop creditors from taking your property or foreclosing on your home.
Debt consolidation companies do not have an incentive to work hard and diligent for you. They typically charge a fee for their services based on your debt not based on how much they can negotiate the debt down.
Debt consolidation cannot help where you have too much debt to repay.The fees of the bankruptcy layer are reviewed by the court to guarantee that they are fair and reasonable.