Which is better for me? Debt Consolidation or Bankruptcy?
There are thousands of companies that will reach out to you when you are in debt. These companies will offer modifications and debt consolidation. They will make promises about lower payments and avoiding “the horrors of bankruptcy”. These letters and calls seem tempting to most people since they state that you will only have “one low monthly payment”. However, there are several things these companies do not tell you, and before moving forward with this strategy, you should reach out and speak with an experienced debt relief attorney.
Our Pottstown office staffs experienced debt relief attorneys and paralegals are here to answer your questions and give you the best direction based on your specific needs.
What Debt Consolidators and Negotiators Will Not Tell You
People are vulnerable when they have money issues, and these companies will feed on that vulnerability. Many of these companies charge monthly fees without ever disclosing what work they are actually performing to help negotiate down your debts. Many clients come to us after dealing with these companies, and they share horror stories such as being charged high monthly fees with very little performance in regards to helping to reduce the actual debts owed.
While there are times when debt consolidation may be the best choice for you, it is important to know all the facts. When any part of your debt is eliminated outside of bankruptcy, you will receive a 1099 from the IRS. The 1099 is issued because all the money that was eliminated is now taxable! If you couldn’t pay your $500 per month debt payment, how are you supposed to pay a $5000 tax bill at the end of the year?
We have years of experience helping clients obtain serious debt relief. Our results are real, unlike debt consolidators and negotiators. Bankruptcy protection is backed by the federal government. Before you decide what your best option may be, please reach out to experienced attorneys who are there to get you optimal results to your debt relief issues.
Contact Our Southeastern Pennsylvania Law Firm Today
Our attorneys are ready to discuss your concerns and provide answers. Our attorneys represent clients in Pottstown, Norristown, West Chester, Reading, and the surrounding areas.