North Little Rock Consumer Bankruptcy Attorneys AR
With the constant promotion on television, it is no wonder that many people burdened with unmanageable debt often consider hiring a debt consolidation agency before hiring a bankruptcy lawyer. If you are currently debating between these two debt relief options, we want you to know the facts about each.
How Debt Consolidation Agencies Work
There is little uniformity between the various debt consolidation agencies. However, one of the more common techniques they use is to start by setting up a payment schedule. You will be required to send a certain amount of money to the agency each month. The agency then contacts your creditors and tries to get them to agree to new terms, which may involve accepting a lump sum settlement. Creditors have no real incentive to agree to the new terms, and quite often they do not. The agency may not be very clear about telling you this.
In the meantime, agencies will accept your payments, but they will not send them to your creditors right away. Instead, they will keep the first few payments for themselves, to cover their fees. What are your creditors doing? They are getting agitated. They are still calling you and harassing you. They are still threatening foreclosure, repossession and filing lawsuits that debt consolidation agencies have no power to stop. Of course, debt consolidation companies really have no power at all. There is no law backing what these agencies do.
How Bankruptcy Attorneys Work
Bankruptcy attorneys, like the ones you will find at the Pray Law Firm in North Little Rock, Arkansas, help people obtain the time-tested debt relief available under the bankruptcy law. We see that people benefit from bankruptcy's power to:
- Stop creditor harassment
- Avoid foreclosure
- Stop repossession
- Stop wage garnishment
- Restore utilities
We do this quickly, effectively and with experience on our side, often for people who were mislead by debt consolidation agencies that left them in worse positions than they were in when they first started on their quest to overcome their debt. Let us help you now.
Contact Us for a Free Consultation
To learn more about debt consolidation agencies vs. bankruptcy attorneys, call 501-588-7044, or contact us by e-mail.