In our opinion, based on extensive experience, our AZ bankruptcy lawyers do not recommend debt settlement plans. In too many cases, it seemingly works for a while, but then the creditors decide to sue.
- Debt settlement is usually used to pay off credit card debt.
- The settlement company gets paid first while the credit card companies wait.
- When credit card companies sue, they want their money right away. They get a judgment, then go after assets, including wage garnishments.
Why do people use debt settlement? They want to stop creditor harassment. And they don’t want to file for bankruptcy. At first, it seems to go well, but there is nothing to prevent the credit card company from suing—which leads to garnished wages.
Bankruptcy is a straightforward, well regulated, fully understood way to deal with too much debt. It provides immediate relief for the debtor, and the creditors know the rules.
If you are considering debt settlement, talk to one of our Goodyear bankruptcy attorneys first.
The first consultation is free at the Rosenstein Law Group, and it can save you a lot of trouble and grief later on. Attorney Brian Blum can explain your rights and options under the Bankruptcy Code. Contact us for an appointment.
