Debt Consolidation vs. Bankruptcy
Pooling all your debts into one payment at a lower rate sounds like a good solution. Don't be fooled. Most debt consolidation programs do not work. In fact, most debtors who go that route end up in worse financial shape.
Atlas Consumer Law is committed to foreclosure relief and debt solutions. For many of our clients, bankruptcy is the best solution or the only viable one. For other clients, alternatives such as loan workouts or debt settlement may do the job. But debt consolidation is almost never a wise move.
Contact us online or call our office at (312) 313-1613 for answers to your questions about bankruptcy and debt relief options.
Debt Consolidation vs. Bankruptcy: Which Is the Right Path to a Fresh Start?
Debt consolidation is usually a scam, or a fruitless exercise at best. Why is consolidating your loans and debts a bad thing?
- Most outfits charge steep upfront fees and/or high monthly fees, offsetting any savings from lower interest rates.
- Most debt consolidators do not negotiate any discount of the amount you owe.
- Creditors do not have to honor the plan. You can still be subject to late fees, interest, negative credit reports, harassing phone calls and collection actions.
- Many people have trouble making the huge monthly payment.
- Consolidations often mix secured and unsecured debts.
The bottom of line is that most debt consolidation plans do not get you out of debt.
Tom and Katie* had medical, credit card and judgment debts totaling $80,000. They paid $2,500 to an agency that promised debt freedom without the downsides of bankruptcy. Despite making $1,000 monthly payments for five years, they are still dealing with $25,000 in unsecured debts, ruined credit scores and harassing phone calls.
- While not a magical cure, bankruptcy offers numerous advantages over debt consolidation:
- Bankruptcy actually eliminates or reduces the debt.
- Debts covered by bankruptcy do not incur interest, penalties or delinquencies.
- The phone calls and threats stop immediately.
- Bankruptcy suspends foreclosure, repossession and wage garnishment.
In appropriate cases, our firm can negotiate debt settlements with creditors in lieu of bankruptcy.
Get the Facts and Make an Informed Decision
If you are considering debt consolidation, or if consolidation loans have not helped your financial crisis, talk to the Chicago bankruptcy lawyers of Atlas Consumer Law. We regularly help individuals with high incomes and substantial debts get back on track.
Contact Atlas Consumer Law online or call (312) 313-1613 to arrange a consultation.
Hear From Our Satisfied Clients
Reviews & Testimonials
At Atlas Consumer Law, your satisfaction is our priority! See for yourself what our clients have to say about working with us.
-
I had absolutely NO exceptions going forward with my lawsuit against a company that harassed me for payment! I was at the ...
- Pam S. -
Everyone at Atlas was so willing to help and so responsive. I'm so grateful for the work they put in on my case! Would highly ...
- Stephanie M. -
THEY GOT RESULTS FAST FAST FAST!!!
- Jake B. -
Atlas consumer Law is amazing and they have the CAN DO attitude and will do anything to get the job done.. I highly recommend ...
- Donnie P. -
The Atlas Consumer Law Group is Awesome. They promptly took care of my issue with a creditor who tried to ignore my rights as ...
- Belinda W. -
I am absolutely AMAZED at this law group! I started a case in March and got it solved in early May! The debt collector was ...
- Aline G. -
Atlas helped us within 6 months more or less and they were an awesome team. I would definitely recommend Atlas Consumer Law ...
- Llyod G. -
When you need the law on you side call Atlas!
- Arlene B.
Meet Our Team
-
Ahmad T. Sulaiman Managing Partner
-
Omar T. Sulaiman Founding Member
-
Mohammed O. Badwan Head of Civil Litigation
-
Nathan C. Volheim Attorney
-
Marwan R. Daher Attorney
-
Nasim Ghebari Director of Case Investigations
-
Eric D. Coleman Attorney
-
Chad W. Eisenback Attorney
-
Alex Taylor Attorney
-
Travis P. Lampert Attorney
-
Sophia Steere Attorney