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Credit Counseling vs. Bankruptcy

Read this clearly: These companies are worse than bankruptcy!

Credit counseling or credit consolidation companies are owned by banks. They promise to lower all of your bills into one payment. They then deduct this payment from your bank account each month. The idea is very similar to a Chapter 13 payment plan.

However, what they fail to mention is that your credit will remain poor until they are paid in full. In addition, they can do nothing to stop foreclosure, repossessions, garnishments, evictions, etc.

Contrast that with bankruptcy protection. Once you file you’ll have an immediate “stay” that stops your creditor’s cold. All of the harassing phone calls stop. Evictions, foreclosures, and repossessions are stopped as well. To top it off – your credit will begin to improve immediately after a bankruptcy!

With a credit consolidation company on your credit report you will be unable to obtain new credit until they’re paid off. That’s usually five years or more. With bankruptcy protection all of your debts are gone almost immediately (with Chapter 7).

The bankruptcy will be reported on your credit report – that’s a good thing. A bank would rather lend money to a person who has no debt rather than someone who is paying off a mountain of it. This is one of the reasons it’s easier for people to get credit after a bankruptcy.

Look at this as just starting from scratch and building everything back up. It’s a big step to take and a huge change in your life. One thing is for sure, once you make that commitment to recharging your life into the new you of financial stability everything seems to fall into place and you can really set bigger goals again. Conatct our offices today or fill out an evaluation form so we can get to know you and your circumstances. This should be an adventure not a struggle.


About the Author:
A little about me:My name is Phillip Evans. I’m a bankruptcy attorney.I have filed 1000’s of bankruptcies and have a passion to reset indiduals lives back in order with finances. If you want to see my work, you’re welcome to stop by the bankruptcy court – I’m usually there. You can always call my office to see when I’m in court next and I’d be happy to meet you.If you need to file for bankruptcy, or think you might, call me any time to schedule a free appointment. We’ll look over your case together and decide what is right for you.Any time: (951) 674-0393  www.rapidbk.com
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