With the recent downturn in the economy, I have seen a proliferation of advertisements for companies offering debt settlement services. Many people who are struggling with debt see debt settlement as a means of solving their debt problems that will allow them to avoid bankruptcy. They assume that debt settlement will help them protect their credit and reduce their debts, so it seems like a great solution to debt problems.
Unfortunately, it is not as simple as some might think. In fact, I have had many clients come to me who regret hiring a debt settlement company to handle their debt challenges. If you wish to learn more about bankruptcy and want to understand some of its advantages over debt settlement agreements, I encourage you to contact me, attorney Charles Covey.
I have been handling bankruptcy cases on behalf of clients for more than 30 years. I have helped thousands of individuals who were struggling with difficult debt challenges. I understand that bankruptcy is not the best solution for every debt challenge, and I am always willing to tell people when that is the case. To learn more, contact my law office in Peoria, Illinois.
Challenges Presented by Debt Settlement Agreements
Even if you are leaning strongly towards debt settlement, I encourage you to meet with me first to make certain you are making an informed decision that will positively impact your future. Here are just a couple of issues you should consider:
- Entering into a debt settlement agreement may have tax implications you have not considered. I have had individuals contact my office and complain that they did not understand that they would have to pay taxes as a result of their debt settlement agreement.
- A debt settlement agreement may also potentially damage your credit rating. In addition, your credit rating may already be so damaged that the benefits of bankruptcy outweigh any credit concerns.
- A Chapter 7 bankruptcy discharges or completely wipes out many types of consumer debt. Why damage your credit with a settlement agreement when you may still have to pay thousands to your creditors? If you can completely discharge your credit card bills, medical bills and many other consumer debts, that may be your best option.
Contact a Pekin Bankruptcy Lawyer
Call 309-674-8125 to schedule your free consultation. You may also contact me by e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.