Debt consolidation companies promise financial freedom and debt relief without resorting to bankruptcy, but there are many pitfalls to this approach. Before you sign on with a debt consolidation agency, take time to learn about your options. It could save you thousands of dollars and untold headaches.
Zingarelli Law Office in Cincinnati is a law firm that helps people in Ohio and northern Kentucky obtain debt relief while protecting their rights. In a no-obligation consultation, a lawyer at our firm can review your situation and provide you with information about debt consolidation agencies and the bankruptcy process.
Get the facts about your debt relief options. Contact our Cincinnati bankruptcy attorneys today for a free consultation.
Debt consolidation agencies use two general approaches:
Lump-sum settlement approach — While you make monthly payments into an escrow account, the agency tries to work out an agreement with your creditors to settle your debts for a lump sum.
Payment consolidation approach — The agency contacts each of your creditors to get them to accept monthly payments in exchange for agreeing not to file a collection lawsuit.
In both approaches, you may be able to obtain debt relief, but it comes with costs and uncertainties. Most importantly, your rights are not protected. Nothing except bankruptcy prevents a creditor from moving forward with a collection lawsuit. You could end up paying thousands of dollars in agency fees and payments to creditors and still have your bank account or wages garnished in satisfaction of a judgment.
In contrast, with bankruptcy you will know up front what your costs will be. An attorney will protect your rights at all times during the bankruptcy process. Creditors will be prevented from pursuing garnishment and collection actions. You will know with certainty how long the process will take and the outcome you will achieve.
Most importantly, an experienced bankruptcy attorney will discuss your bankruptcy and alternative debt relief options to find the best solution for you. Zingarelli Law Office will work hard to help you obtain maximum debt relief while enabling you to keep as much property as possible. We will handle all aspects of your bankruptcy filing]for a reasonable flat fee. Our Cincinnati attorneys have helped hundreds of people in Ohio and Kentucky get a fresh start — and we want to help you.
For a no-obligation consultation with Zingarelli Law Office, contact our attorneys online or call 513-381-2047. With an office in Cincinnati, Ohio, we serve clients throughout southwest Ohio and northern Kentucky.