Bankruptcy v. Debt Consolidation

Most people have seen or heard the commercials.  A somber-voiced man asks you if you are in over your head financially.  He has just the solution for you.  Call 1-800-Debt-Go-Away and you will now have affordable monthly payments.  Unlike bankruptcy, debt consolidation does not discharge your debt.  You are actually taking out a loan from the debt consolidation company.  The company then pays off your loans and you make one payment to the company every month instead of varying entities.

The main distinction between bankruptcy and debt consolidation is that there is no discharge in consolidation.  You are simply combining several lenders into one lender and making one payment every month.  You may get lower payments but they may be spread out over a longer period of time, thus extending the amount of time you are in debt. 

Bankruptcy could be a viable option if you are looking to discharge debt and start over.  Any questions that you may have can be addressed by a veteran Fears | Nachawati Law Firm attorney.