Bankruptcy

Should You Hire Debt Agency To Settle Card Debts?

By Jonathan Alper

Do I file bankruptcy, or do I hire a debt settlement company and try to work it out with my creditors? That?s a question many people ask themselves when they find themselves overwhelmed with credit card debt. Often, people who call or e-mail be about a possible Chapter 7 bankruptcy asked me if I think they should try to use a debt settlement company to help them settle with their creditors.

I saw an interesting blog post about debt collection firms written by another bankruptcy attorney. He states that paying a debt settlement agency to negotiate debts is usually not worth the cost, and there are some pitfalls in debt settlements which are not problems in bankruptcy.

 I agree with this blog post; I find that settlement agencies usually do not solve the peoples? debt problems once they are seriously behind on their credit card debt. Understand that whether you should negotiate with your creditors, and how you should negotiate with your creditors, is not a legal issue and certainly not a bankruptcy law issue. Carefully consider the issues in the blog article before you hire a debt settlement agency. post

Full post as published by Florida Bankruptcy Law on December 10, 2009 (boomark / email).