Quite honestly? No. Bankruptcy can be seen as a scary option, and for many who’re suffering from debt, turning to a debt settlement company might seem like a more favorable option. Many of these companies claim to help you settle your debt without bankruptcy so you can quickly move on with your life. However, their claims to help will very often not provide you what you need to escape debt or creditors at all.

3 Tips to Consider Before Turning to a Debt Settlement Company

Here's what you need to consider before you decide to turn to a debt settlement company:

  1. Debt settlement companies will charge you before they even begin working with your creditors. Make sure you read the contract thoroughly before you sign onto anything with a debt settlement company. They’ll charge you at least several thousand dollars in advance before they even consider settling your debt. There’s no guarantee they can even do what you need. Essentially, you’re paying more money than you have—when you need that money to pay debts.
  2. debt settlement vs bankruptcyThey can’t stop your creditors from filing a lawsuit against you. Since debt settlement companies often don’t have an attorney at their office, they’ll usually refuse to help you once your creditor files a lawsuit. At that point, you’ve already paid them several thousand dollars to help. This puts you in an even worse position; after your creditor files a lawsuit, you’ll only have a short amount of time before they garnish your wages.
  3. You won’t get all your money back, even if they can’t help.  Unless they actually settle a debt for you, most of what you pay them will go directly to their fees. When you realize they aren’t even helping you, but merely putting your money in their pocket, your refund will be disappointing. Probably less than 50% of what you’ve paid them. You’re left with another giant expense while continuing to struggle with massive debt.

Contact Our Nebraska Bankruptcy Attorneys Today!

If you find yourself struggling after turning to a debt settlement company, our experienced Nebraska bankruptcy attorneys will gladly try to help. However, the language used in the debt settlement contract may be binding, and there could be no way for us to assist, other than helping you to file bankruptcy.

Don’t be afraid of bankruptcy. It’s very often a much better option than suffering through payment after payment with no way to save and the risk of lawsuit from creditors. Our Nebraska bankruptcy attorneys are more than happy to help you navigate these options, if you’re considering bankruptcy. For any questions you may have about debts and bankruptcy, give us a call today at (308) 872-8327.

William V. Steffens
Nebraska Personal Injury & Bankruptcy Attorney With 34+ Years Of Experience
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