Many of our clients facing serious debt problems have first looked to Debt Consolidation or Debt Management Plans. In many cases, our clients have tried to meet their obligations to their creditors to their own detriment only to be find themselves mislead by promises of “debt consolidators” or “debt management plans” who charge high fees and never really address their underlying debt issues.
Debt consolidation or debt management plans entail taking out one loan to pay off many others. In recent years, reports in the media have raised concerns about the use of consolidation loans. The worry is that many people are tempted to consolidate unsecured debt into secured debt, sometimes secured against their home, sometimes making payments for months and years only to be subjected to continued creditor harassment and lawsuits. Although the monthly payments may often be lower, the total amount repaid is often significantly higher due to the long period of the loan. Debt consolidation sometimes only treats the symptoms of debt and does not address the root problem. Our New Jersey debt management lawyers are here to help.
Before considering debt consolidation, consult with an experienced bankruptcy attorney to at least learn your rights under Chapter 7 and Chapter 13 of the bankruptcy code. Do not rely on your own understanding or misleading advice of well-meaning family and friends. Most times, clients are wholly unaware of the protections and benefits of the Bankruptcy Code and the limitations, pitfalls, and costs of debt consolidation.
A New Jersey debt management attorney can give you personalized advice and help you return to a more stable financial position. Call now to learn more.