Debt Settlement/Credit Counseling

Our Bankruptcy Attorneys Tell All About Debt Settlement and Credit Counseling

When people are faced with debt, any promise of a solution can seem attractive. TV commercials that offer debt settlement, credit counseling or debt consolidation services are popular. Unfortunately, these companies may not actually be able to deliver on their promises. Many do not even have the legal strength to do so even if they wanted to and have only the same power that their consumers have to change the terms of their credit debt.

At the Debt Relief Legal Group, our Tampa bankruptcy lawyers are aware of these programs and how they can lure in people who will do whatever it takes to get rid of debt. Instead, we counsel our clients on better options, such as bankruptcy, that may actually discharge debts. Bankruptcy is a legal solution that comes with a much greater chance of success, which cannot be provided by debt settlement or credit counseling service programs.

Credit Counseling and Debt Settlement Companies Typically Do Not Work

There is no secret to what credit counseling services do. They call your creditors, and they ask to have your interest rate decreased, your term extended or even to have your principal reduced. They call your credit card companies. They call about your medical bills and your car loan. Sometimes, they are able to make a dent and set up arrangements that may allow you to get back on track. More frequently, they simply delay the inevitable. In the end, you may have to file bankruptcy anyway.

Debt settlement companies advertise that they can settle your debt for about half of what’s owed. The problem is that by the time they settle the debt, it has already doubled so you end up paying as much as you owed in the first place. Typically, they will settle some small accounts to justify their exorbitant fees but it is very rare that they are able to propose a viable plan to amicably pay off your debt within a reasonable time frame.

Our Tampa bankruptcy lawyers are ready to talk to you about tried and true methods of debt elimination and debt consolidation. We will present you the facts about how credit counseling would work in your specific situation and compare it to bankruptcy. We will let you decide for yourself which option makes the most sense.