DEBT CONSOLIDATION VERSUS BANKRUPTCY
I am often asked, why not do a debt consolidation rather than a bankruptcy. The fact is that sometimes, a debt consolidation is better than bankruptcy. The first step in making that decision is to either discuss this with a competent attorney or go to an honest debt consolidation company.
I have sent many persons to honest debt consolidation services and they have helped many persons to not file bankruptcy and have sent many more back to me to file bankruptcy. If your debt is all credit card debt, it may be possible to, with the aid of a debt consolidation service to work out a payment agreement with the credit card companies. However, if you have a title loan and need to keep the vehicle or other creditors, the debt consolidation service will probably not be able to help you.
In the Lowcountry, Family Services is an honest provider of debt consolidation services. You should contact them if you think you may be able to be helped by them. A key to whether they can help you is whether you are making some payments to your creditors. If you do not have the ability to pay your creditors anything, then no debt consolidation service can help you. No credit card company is going to be willing to get nothing and be happy about that.
Bankruptcy can often allow you to pay your creditors nothing or much less than you would pay through a debt consolidation service. If you are paying your creditors anything after filing bankruptcy, it is not an amount as set by the creditor. The amount you are paying is now based on what is fair to you and your creditors, taking into consideration the amount of income you have, the reasonable expenses you may also have and future needs.
When you find yourself in financial difficulties talk to an attorney and/or Family Services to see what your options may be. Only you can make the decision, but, without good information, you are guessing about what will work best for you and your family. I will encourage you to go to Family Services if you are uncertain about your ability to pay and what is best for you.