Debt Consolidation

Florida Credit Counseling Lawyer

Debt consolidation companies have worked very hard to convince people that the service they provide is the best way to deal with overwhelming debt. They promise to help you get out from under your debt with minimal difficulty. In reality there are a number of factors that make the promises of debt consolidators unlikely to come true for most consumers.

At Sacks & Sacks, P.A, our Jacksonville debt consolidation attorneys have extensive experience in helping people get a fresh start after falling deep into debt. We understand the what debt consolidation can and cannot do to help most consumers. We can explain the benefits that bankruptcy offers over debt consolidation.

Problems With Debt Consolidation

Debt consolidation has a number of critical flaws that will actually create greater problems for individuals suffering from overwhelming debt:

  • There are no guarantees that all of your creditors will participate in a debt consolidation. — Those creditors who do not participate in your bankruptcy have no further claim on the debt.
  • You have to pay an upfront fee to the debt consolidator. — That fee is typically more expensive than a complicated bankruptcy.
  • Creditors are not required to negotiate their debts under consolidation. — In bankruptcy, creditors must negotiate the amounts owed and what you will pay back is determined by the court.
  • Debt consolidation can trigger income taxes on reduced debt. — Bankruptcy creates no tax burden.
  • Interest and late fees can continue to accumulate over the course of a debt consolidation. — Creditors cannot continue to charge these fees after the bankruptcy paperwork has been filed.

Our firm has a solid understanding of the laws that govern debt relief and can help you secure the maximum benefit from your efforts to deal with your debt.

Contact Us

Before becoming involved with a debt consolidation plan that may leave you worse off than before you started, call (904) 399-2099 or simply contact us online to schedule your free initial consultation.

Sacks and Sacks Law
1646 Emerson St. Suite B Jacksonville, FL 32207

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