Although filing for bankruptcy can provide considerable relief to those who are facing insurmountable debt, bankruptcy is not always the best choice for everyone. While some may not qualify for bankruptcy, others may wish to use an alternative solution to solve their debt problems. This is where debt relief programs come in, claiming to help consumers negotiate with their creditors and provide a solution to settle the debt.
However, is it safe to use a national debt relief organization to resolve your debts? While some report positive experiences with these companies, others (many others) have reported negative experiences that resulted in them spending more money in the long run. Also, many consumers have been taken advantage of by debt relief companies that ended up collecting fees without actually providing any debt relief services.
Rules enacted by the Federal Trade Commission (FTC) provide protection to consumers using debt relief organizations to settle their debts. The organizations are no longer able to charge any upfront fees. While this is a major step forward, it is important to remember there is still no cap on how much the organizations can charge for their services. Therefore, while using debt relief services have become much safer, there is still risk involved.
The FTC encourages consumers to research any debt relief companies they are thinking about hiring. Some consumers choose to deal directly with their creditors in order to settle their debts. Consulting legal counsel will allow you to understand all of the options available to you considering your unique financial situation.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.