Los Angeles Debt Consolidation Lawyer

Debt Consolidation vs. Bankruptcy

If you are struggling with debt and looking for a way out, it is wise to explore your options. You have probably seen or heard advertisements for debt consolidation services that promise to work with your creditors to consolidate your debt and significantly lower your monthly payments. We urge you to use caution before contacting one of these services. Like most promises that sound too good to be true, they often are.

At RHM LAW LLP, we will help you explore all of the debt relief options available to you. We are a bankruptcy firm, but we do not push our clients into bankruptcy if we do not think it is the best option for them. We are committed to helping our clients resolve their debt problems, achieving true debt relief, and avoiding potential debt consolidation scams.

Call us at (213) 344-0043 today for a 30-minute risk-free consultation with a Los Angeles bankruptcy lawyer. It could be your first step on the road to debt relief.

Is Debt Consolidation Right for You?

If you hire a debt consolidation service, the best-case scenario is that they will act in good faith and attempt to work with your creditors to consolidate your debt and negotiate lower payments. The question is: How are they going to get your creditors to go along with the plan?

In many cases, debt consolidation services have no leverage and no means of providing lenders with incentive to agree to a debt consolidation. If, after months of waiting, the company is not able to help you, you will be left with all of the debt plus months of interest and/or late fees. Plus, you probably paid good money to the debt consolidation service. More often than not, the fees are more excessive for less relief than a discharge in a bankruptcy.

The above scenario is based on the assumption the consolidation service is acting in good faith. Since these companies are largely unregulated, consumers are putting themselves at risk by handing money over to them. A bankruptcy law firm is backed by the power of the federal bankruptcy code. When you file for bankruptcy, you do not have to get your creditors to agree to the plan. It is enforced by the bankruptcy court.

Bankruptcy is not right for everyone, but those who it can help are usually at a disservice by hiring a debt consolidation service.

Contact RHM LAW LLP

Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and our attorneys serve clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.

For a 30-minute risk-free consultation about filing for bankruptcy with RHM LAW LLP, contact our firm today.