Anaheim Bankruptcy Attorney – Anaheim Chapter 7 & 13
As an Anaheim bankruptcy attorney, I can tell you that so many of our clients come in after responding to an ad for debt management or debt negotiation. One of the questions were are most often asked is if these are viable alternatives to an Anaheim Chapter 7 or 13 or are debt management programs just scams.
Let me give you the short, honest answer: yes they do work, but I can tell you from experience they are a much WORSE option than an Orange County bankruptcy. I am not going to pass judgment on whether they are scams. We believe that they just don’t make any sense.
First, let’s discuss what goes on with these debt management programs. What usually happens is that the company advises you to stop paying on your credit cards in order that you save money. Then they will call the credit card company and offer a lump sum in order to write-off the debt. Well, that doesn’t sound too bad does it? Truth be told, it is.
These debt management or settlement companies are not doing anything you cannot do yourself. All they are doing is calling the credit card company. You can do that. You can make a call. Further, lets look at an example. If you owe $10,000.00 in credit card debt, the debt settlement company will call the credit card company and offer $3000.00 to settle the debt. First, the $7000 you just saved is a taxable event. Second, your credit score takes a major hit from a debt write-off. Just as much, if not more than bankruptcy. Third, you had to pay the debt settlement company a significant amount. Fourth, what if you have other credit card or unsecured debt that cannot be negotiated down? If you filed for Anaheim bankruptcy you can have all your unsecured debt discharged.
If you our someone you know is in financial difficulty, we recommend that you contact an Anaheim bankruptcy attorney before you contact anyone else. It’s true, a debt settlement might be your best option, but you want to find that out before you spend money. At the Law Office of Harold D. Thompson we will give you a free consultation outlining all your options. Since 1976 we have been helping consumers in Orange County and all over Southern California with their bankruptcy needs. Call our office today at 1.888.665.8330 or find out how you can become a client right now!
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