Most people want to pay their debts. And for most people, debt settlement or debt consolidation sounds like a good idea. Here is the truth about debt settlement and debt consolidation.
- Most debt consolidation plans and debt settlement schemes are frauds
- Most debt consolidation agencies and debt settlement companies will rip you off
- Credit card companies will accept lump sum cash settlements from you if they are convinced that they can’t collect your debt. If you have some cash or can get some from a friend or relative, Lakelaw will help you with this on an hourly basis.
- While you are saving your money after you default, under a so-called “debt consolidation program” interest accrues on your credit card debt at the default rate. You can pay your debts over time in a chapter 13 case, almost always without interest.
- In the typical debt settlement program, credit card companies will sue you and get judgments against you once you stop paying them. In chapter 13, the automatic stay stops all lawsuits against you.
- When credit cards get judgments against you, they will attack your bank accounts and garnish your wages. In chapter 13, there is no wage garnishment. You make one payment a month to your chapter 13 trustee and have no further worries.
- If you have some ready cash available, you might be able to negotiate a settlement on credit. You can try this yourself or you could hire Lakelaw to try this for you. We do this work on an hourly basis, not based on a commission for what we save you as you would pay to many debt consolidation firms.
- The Federal Trade Commission and the Illinois Attorney General, among others, have warned consumers to avoid most, if not all, debt settlement companies. These companies tend to be scams and frauds.
- If you have been ripped off by a debt settlement firm or a debt management company, Lakelaw will sue them to recover your losses.