In this difficult economy there is no shortage of agencies offering to help you with unmanageable debt. The problem is, too many of these outfits help themselves first.
Beware of the “debt consolidation agency”.
It may go by another name, but the idea is that the agency will renegotiate your debts with your creditors for a fee.
When dealing with unmanageable debt, it is always preferable to deal with a bankruptcy attorney, and not a debt consolidation outfit. It can be very tricky. The consolidators will promise to renegotiate your debts, but they lack the legal power to do so, and they will insist on being the first to get paid.
Avoid debt consolidation firms. Even when they are honest, they offer no advantage over filing for Chapter 13 bankruptcy. Many debt consolidation firms are predatory and have been known to take the debtor’s money, leaving them worse off than before.
Contact a skilled, experienced bankruptcy lawyer at David W. Brauer, PLLC, instead.