Dangers of Working with a Debt Consolidation Company

Free Consultation: We offer a free initial consultation with an experienced Bankruptcy Attorney who will evaluate your situation and explain all of your options. You will be under no obligation to pay us anything, and you will then know your alternatives. So, it is a bad idea to delay. If you have not already done so, then meet with us today! Doing so will likely save you thousands, educate you on how to rebuild your credit and protect your assets. Dangers of Working with a Debt Consolidation Company www.mdbankruptcycenter.com Debt consolidation companies claim to provide an easy way out of a complicated debt situation. With promises of lowered interest rates, waived late charges, and lower monthly payments, it is no wonder that people are sometimes attracted to such plans. Unfortunately, debt consolidation typically is not as good as it claims to be and proves to be a very costly alternative to bankruptcy. Debt consolidation companies are out to make a profit, and at your expense. Often times, debt consolidation is a much more expensive avenue and is much more damaging to your credit. Many people who choose to work with a debt consolidation firm find out that their long-term financial goals are more difficult to meet than if they had filed bankruptcy to begin with. Debt consolidation companies often charge much higher fees, thus placing extra weight on debtors' already existing financial burdens. In some cases, creditors may take legal action (such as filing a lawsuit) against debtors while enrolled in a debt consolidation or debt settlement plan. Is bankruptcy a better option than going through a debt consolidation program? Yes, for several reasons. First, if you qualify for a Chapter 7 bankruptcy, then all of the unsecured credit card debt should be completely discharged...and there is no taxable event to come back and bite you later. However, if you settle with or consolidate your unsecured creditors then it is usually a taxable event under the Internal Revenue Code. Secondly, in a Chapter 13 Plan, the Court will force your unsecured creditors to accept the Plan even if you are paying them a very small percentage or making absolutely no payments toward their actual claim. A private serve has no such power. In addition, once you file the bankruptcy, none of your creditors may file suit or take any further action against you. A private service has no power to stop your creditors. Further, in Chapter 13, all interest and penalties stops on priority debts (i.e. IRS). That means the debt will no longer continue to grow. Best of all, not only has the interest been removed, but the underlying unsecured debt (credit card debt) should be discharged. In addition, it is often much easier to rebuild your credit after you have filed a bankruptcy than it is after you have gone through a debt settlement or debt consolidation plan. MARYLAND BANKRUPTCY CENTER, L.L.P CAN HELP YOU AND YOUR FAMILY Maryland Bankruptcy Center, L.L.P. is made up of 4 attorneys with more than 30 years of combined experiencehelping people file personal and small business bankruptcy. You can rest assured that we have successfully resolved financial issues like yours many times in the past. We help people eliminate their debt and get a fresh start every day. Our fees are affordable, and our service is top-notch. There is absolutely no substitute for experience. Hiring attorneys with extensive knowledge and proven records of success gives you something you truly need in difficult and uncomfortable times: Peace of mind. WE ARE HERE TO ANSWER YOUR LEGAL AND FINANCIAL QUESTIONS Maryland Bankruptcy Center, L.L.P. is recognized as a leader in the bankruptcy law arena. We have helped thousands of clients file for bankruptcy protection over the last 20 years. Call us today at 410-766-4044 to speak with an experienced Maryland bankruptcy lawyer at a free initial consultation or with any follow up questions that you may have after attending the first consultation. We look forward to hearing from you in the near future. Yours truly, MARYLAND BANKRUPTCY CENTER, L.L.P. David L. Ruben, Esq. Stacey A. Rogan, Esq. Susan E. Turner, Esq. Kathleen H. Anderson, Esq. Kenneth L. Brayboy, Paralegal Empire Towers Office Building 7310 Ritchie Hwy, Suite 704 Glen Burnie, MD 21061 www.mdbankruptcycenter.com Maryland Bankruptcy Center, L.L.P. Empire Towers Office Building 7310 Ritchie Hwy, Suite 704 Glen Burnie, MD 21061 Maryland Bankruptcy Center, L.L.P.