The Dangers of Debt Consolidation

Debt and Credit Consolidation Scams

With so much media attention being paid to our economy, it is no wonder that many organizations offer debt relief through methods other than bankruptcy. One of the most common methods involves debt consolidation.

At The Rollins Law Firm, we'd like to caution our prospective clients against rushing to a decision too quickly. Unfortunately, many people who advertise help through debt or credit consolidation can actually do little to help you. They will send letters to your creditors in an attempt to settle your debts. More often than not, the creditors will decline and you, the debtor, won't hear anything about it. We just ask that you do some research before turning your finances over to anyone.

The biggest advantage that bankruptcy has over debt settlement programs is that we can force your creditors to participate. Creditors have the option of ignoring a debt settlement company’s settlement attempts. While the debt settlement company is attempting to negotiate, the creditor can simply ignore them and continue to sue you. After successfully suing you the creditor’s next step is to garnish your wages or your bank account. In bankruptcy the creditors are prohibited from doing any of that. Once a case is filed there is an automatic stay put into effect which prohibits all collection activities from your creditors. Your creditors cannot call, mail, email, sue, garnish, repossess or foreclose unless they get permission from the bankruptcy court. This is designed to give you some breathing room. Hopefully you can get a goods nights rest knowing that your creditors are not working in the background to continue collections. We can see the relief on our clients faces when they leave their bankruptcy signing appointment and know that they are protected from their creditors.

Jackson Debt Relief Attorney

While debt and credit consolidation scams have been around for decades, some people still find relief through them. It is crucial to remember, though, that the Bankruptcy Code was developed by the government as a way for honest hardworking Americans to get out from under crushing debt and start toward a bright financial future. Essentially, bankruptcy is a government-approved method of starting over. In fact, many people refer to Chapter 13 as the only true method of debt consolidation.

Whether you are seeking to eliminate medical debt, credit card debt or personal loans, it is wise to seek the counsel of a knowledgeable Mississippi bankruptcy lawyer. Our attorneys will thoroughly examine your unique situation and provide legal guidance as to your best course of action. Even if bankruptcy is not the right option for you, count on us to provide alternatives.

Call The Rollins Law Firm at 601-500-5533 or contact us online to learn more about our bankruptcy. We accept credit cards for payment of services. All prospective clients will meet with an attorney rather than a paralegal or legal assistant during the initial consultation. If the client cannot travel, we can do the interview over the telephone and mail any pertinent documents to the client.

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I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
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The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
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Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
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My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.