Bankruptcy Can Sometimes Lower Debt When Chicago Debt Relief Companies Can’t

There's a big difference between debt relief and debt relief. And no, that's not a typo.

You've probably heard the advertisements on the radio and read them on the Internet - so-called debt relief companies claim they can negotiate with your creditors in order to get your debt paid off. They promise you'll have a low monthly payment and freedom from debt in just a few years, or even a few months. How can you go wrong, right?

But just because a company has "debt relief" in its name or slogan, that doesn't mean they can get the job done.

In many cases, debt relief companies will tell customers to stop making payments on debt. Instead, they recommend you save up your money so you can afford a large debt relief payment, sometimes $1,000 or more. Meanwhile, they deduct monthly fees from your checking account - and, unlike they advertise, these fees aren't usually low.

It gets worse. There's no guarantee that debt relief companies will negotiate with creditors on your behalf. And even if they do, you'll most likely have to add to your debt to make ends meet while you pay their monthly fee. At the same time, you'll be ringing up missed payment fees and other penalties for the bills you aren't paying, all while fielding calls from bill collectors and damaging your credit.

The truth is, most customers quit debt relief programs before seeing any of the supposed benefits. Had they filed for bankruptcy to lower or eliminate their debt, however, they would have seen results right away. With Chapter 13 bankruptcy, a legal action known as the automatic stay could have protected their house from foreclosure. And they would have been able to develop a personalized payment plan to make paying off even the largest debts possible.

Debt relief isn't about making outrageous claims - it's about making your debt smaller. Our Chicago bankruptcy attorneys can make it happen. Want to know if bankruptcy can free your life from debt? Try our free personal debt analysis. Because you shouldn't have to pay for a debt relief service that doesn't lower your debt.

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