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Credit Counseling

What You Should Know About Credit Counseling Services

You should always speak with a bankruptcy attorney before contacting a consumer credit counseling service. Consumer credit counseling can hurt you more than help you. When you go to a consumer credit counselor, they may pick one or two of your outstanding credit obligations and leave you to manage the remainder of your credit accounts. The words "account managed by Consumer Credit Counseling" will appear on your credit report, which to many lenders means self-made bankruptcy in progress.

Debt counseling programs are just as damaging to a person's credit as filing bankruptcy. You have no legal protections with consumer credit counseling, but you do with bankruptcy. Also, with filing bankruptcy, such as chapter 7, the majority of your debt, like credit cards and personal loans, will be discharged, meaning you owe nothing. Credit counseling affords you no legal protections. Your creditors can continue to call and harass you. With bankruptcy, creditors can suffer severe penalties for harassing you.

Many people go to a consumer credit counseling services only to find out that the monthly payment is too high, that their credit card companies refuse to lower interest rates, and that payments made were not accounted for or properly distributed to their creditors. The consumer credit counseling service can put you in a worse position than the one in which you started.

If you have decided to utilize the services of a consumer credit counseling service, keep in mind that you may be much better off consolidating your debt under chapter 13 of the United States Bankruptcy Code. You set the plan approved by the court and make payments pursuant to a court order that stops interest, stops late fees, and stops harassing telephone calls. Contact us for a free initial consultation prior to signing up with the consumer credit counseling service and have a lawyer with extensive bankruptcy experience review your financial status and advise you of the options available to you.

John Rogers Attorney at Law Old Firehouse Building 111 West Wayne Street Glasgow, Kentucky 42142 Phone: 1-888-651-9353 Fax: 270-651-9350 Email Me For Directions, click here

Certified - Consumer Bankruptcy Law - American Board of Certification