A debt consolidation in Skokie should not be entered into before consulting with an experienced bankruptcy attorney. Why is this? There are many legal considerations for both bankruptcy and debt consolidation programs of which you may not be aware. You need to have all of the relevant information before you can make an informed decision of your best debt management options. There are many things to consider for each type of plan.
One thing you may not know about Skokie debt consolidation plans is that you will have to negotiate the terms of the plan with your creditors. The creditor is not obligated to agree to the terms of the debt consolidation plan and may even choose not to participate. Many times, a debt consolidation program will only take care of certain types of unsecured debt, such as credit card debt. You also must be very careful to deal with a reputable debt consolidation company to make sure the creditors are really being paid as promised.
Bankruptcy has legal rules laid out by a judge that both the debtor and creditor must follow. In most cases, filing for either a Chapter 13 or Chapter 7 bankruptcy will provide a “stay” against further collection efforts, law suits, wage garnishments or foreclosure proceedings. You should even be able to put a stop to those harassing collection calls once you have proof of a bankruptcy filing. Creditors are required to play by the rules set by the judge. One major difference between bankruptcy and debt consolidation is that a creditor can still sue you when you are in a debt consolidation plan. This is not the case with bankruptcy.
If you are considering a debt consolidation program, you should ask the company representative some tough questions before agreeing to any terms. Will the company defend you in any lawsuits should the creditor choose not to participate and sue you? Do not believe any verbal promises – get everything in writing. Ask to see the company’s licensing and bonding for the state where you live. Many companies try to operate who are scams and do not have the proper licensing requirements. Contact any legal staff that the company claims to have and verify that they are actually employees of the company. Better yet – have them checked out by your own legal counsel to see if they are a legitimate organization.
Debt consolidation companies have the potential for abuse, while bankruptcy proceedings are pretty much set in stone by a court of law. You can be sure everyone will play by the rules. While financial struggles can be a time of personal hardships and you may not know which way to turn, there are debt management solutions available to you. Your best option may be to discuss Skokie debt consolidation programs with a qualified attorney. You may find that certain types of bankruptcy also offer the same benefits of debt consolidation programs, allowing you to pay off debts to creditors over time. A first consultation is usually free, so you have nothing to lose by discussing your options.
A Skokie debt consolidation attorney knows that you have questions about your best debt solution options. He can go over all the pros and cons of each option and help you make the best decision. Chicago Debt Solutions has 5 convenient metro area locations to serve you. Julie Trepeck is a skilled attorney with extensive experience and legal knowledge of bankruptcy laws. She can assist clients in all stages of debt problems and help them find a solution. For more information or to schedule your free debt solution consultation, you may visit the website http://www.chicagodebtsolutions.com/ or call 312.445.9106. You can like them on Facebook.
