Debt consolidation or bankruptcy

What is better, debt consolidation or filing bankruptcy? Each person is different, but there are some general guidelines in determining whether debt consolidation or bankruptcy is a better option.

First of all, you should make sure the debt consolidation company you are dealing with is in fact a legitimate company. We do not mean that they are legitimately incorporated, or that they have nice advertisements or are in a nice building, we mean how much they charge you, their work methods, and their regulation. They may cost you much more than if you were to negotiate the debt yourself. They are very rarely licensed attorneys who are regulated by strict Ethical Codes or the State Bar.

Debt consolidation is also concerning because it treats the symptoms of the problem, not the root of the problem. Debt consolidation can also make it much longer or even impossible to eliminate all the debt you have. An alternative to debt consolidation that should be seriously considered is bankruptcy. Contact us at the Rashid Law Firm for a free initial consultation with a bankruptcy lawyer. Call 832-209-8833.