The truth is that debt consolidation rarely works for consumers seeking debt relief from debts such as credit card debt. Unlike bankruptcy, there are no laws that require creditors to agree to modifications. Generally, agencies that handle consolidation of debt instruct you to stop paying your debts and to start making payments to them. The majority of these initial payments go to pay the agency’s fees for consolidation of debt. Once enough money is accumulated from your payments, the debt consolidation agency will make an offer to settle your debt. Of course, during this time, none of your creditors are getting paid. If a settlement is rejected, you could find yourself in much deeper debt than you were before starting the debt consolidation process.
Filing for bankruptcy — Chapter 7 or Chapter 13 — will allow you to achieve a fresh start in a controlled manner regulated by state and federal bankruptcy laws. Creditors will have no other choice than to cooperate.
Rodney K. Okano handles debt consolidation and bankruptcy
At the Law Offices of Rodney K. Okano in Las Vegas NV, we have helped more than 1,000 clients throughout southern Nevada get the fresh start they need. We handle bankruptcy cases from A to Z, including all filings, hearings, and paperwork.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.