Debt Consolidation or Bankruptcy? Oct03


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Debt Consolidation or Bankruptcy?

Many Illinois residents who are steeped in debt have heard the notion that debt consolidation in Schaumburg is better for repairing your credit than filing bankruptcy. You may have even heard about the “negative impact” of bankruptcy as opposed to debt consolidation, as though taking recourse in bankruptcy law is somehow punitive. The fact is that in most cases, bankruptcy is far less expensive, more reliable, efficient and effective than debt consolidation, which takes a lot longer to accomplish. And often, debt consolidation in Schaumburg can have a far more deleterious effect on your credit score than filing for bankruptcy.

Consulting with a bankruptcy attorney may be the first step to educating yourself fully as what kind of options you have, and whether it would be better to file than to go to a debt consolidation company. Usually, a debt consolidation company in Schaumburg will charge you a 15% fee in order to help you eventually settle your debts, and in addition to that, the company really works for your creditors and is not there to help you. There are no legal protections from creditors when you use a company to consolidate, and creditors can still hassle, harass and even sue you in court.

Most people who use a company to help consolidate their debts do not understand that they are paying more in order to pay off already existent debts, and that the company is not providing any kind of service that cannot be done more cheaply on your own. The company cannot protect you from creditors, and its authority to deal with them is extremely arbitrary and almost intangible. Creditors can still go after you. Many people who seek consolidation are unsuccessful in their attempts to deal with their debt, and many find themselves being sued by creditors anyway.

When you file for bankruptcy, most unsecured debts are discharged and creditors can no longer call you, write you or contact you in regard to your debts. You are given a fresh start and can begin rebuilding your credit within about six months. A real, legal solution by filing for bankruptcy is a way to deal effectively with your financial future by dealing legally with debt, legally protecting you from debtors, and giving you the legal opportunity for a fresh financial start without worrying about being pressured by creditors.

A bankruptcy lawyer in Schaumburg will usually provide free consultations, and will help you to effectively stop collections and free you up to pursue financial independence far more quickly than debt consolidation companies will.



Debt Consolidation Schaumburg – Chicago Debt Solutions provides bankruptcy help in Chicago for those who are overwhelmed by debt. Seek a real and legal solution, not a tactic that could only prolong your financial problems and, in the end, cause you more harm and stress. Visit us online at or call us at 312-445-9106.

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