Goodness knows, when you’re a debtor contemplating filing individual bankruptcy in Indiana, you won’t need to look very far to find suggestions for what to do instead. In fact, companies offering different kinds of debt relief will probably be looking for you!
Now, I’ve been a debt consolidation lawyer offering Indiana bankruptcy services for more than twenty-five years, but things have gotten a whole lot more confusing for consumers during the recent recession. With options of every possible sort being offered via radio and late-night TV or on the Internet, the expression “debt relief” has come to mean many different things to many different people.
The real problem is that when creditors are making your life miserable while you cope with job loss, divorce, and medical costs, you’re not in the best frame of mind to understand those differences. My Columbus bankruptcy lawyer colleagues, for example, are constantly discovering new “debt settlement companies”. These agencies have debtors deposit money every month into a trust account. Once a certain amount has accumulated (which takes a long time, with upfront fees to the agency being deducted), the agency tries to work out a deal with creditors for a reduced lump sum payoff. Of course, as I keep warning Bankruptcy in Indiana readers, no deal is guaranteed to ever happen, and, meanwhile, the late fees and penalties continue to pile up from those creditors not getting paid.
Debt consolidation companies, on the other hand, offer to combine all your bills into one monthly payment, with idea being to get creditors to make deep interest rate cuts (again, nothing is guaranteed to happen). Meanwhile, the debt consolidation company is charging nonrefundable fees of its own.
New forms of “debt help” are constantly being offered to consumers. Sometimes, after so many years of offering Indiana bankruptcy help, working with people who need everything from student loan debt help to payday loan debt help to help to stop foreclosure, I think I’ve seen every possible type of possible alternate “debt help” that can possibly be invented. The worst of it is, many of the organizations running those late night TV ads or internet ads are simply scams.
State and federal regulators work hard to protect the public against scams, but a lot of well-meaning people fall for them all the same, wasting money they don’t have, and time they can’t afford, as they seek so-called “debt relief” rather than professional Indiana bankruptcy help.
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg