Lawyers Discussing All Of Your Debt Options
For more than two decades, Kurland Law Group has been helping people with their debt problems, including bankruptcy and bankruptcy alternatives. During the initial consultation, clients nearly always ask about for-profit debt workout companies that advertise on the radio and television. Many people simply don’t understand the way these companies work — and the companies often don’t want you to know everything until you have signed a contract for their services.
Bankruptcy Alternatives: Talk To The Right Lawyer First
Before you talk to a debt workout company about debtors’ options, contact the Kurland Law Group in Rockville, Maryland, to discuss bankruptcy alternatives. From preventing foreclosure to developing a loan modification plan your family can afford, the firm is ready to help.
Here are some basic facts that the radio and TV commercials don’t tell you:
- The debt workout company will negotiate with your creditors to reduce your credit card interest rates or eliminate late fees. In many cases, you may be able to do this yourself with a simple phone call.
- The company will typically base its fee on a percentage of the “savings” from your original debt load. On a debt savings of $10,000, some companies may charge a fee as high as $3,500. That sounds like a good deal, until you decide that you can’t maintain the required monthly payment … keep reading.
- You will not pay your creditors directly. You will pay a preset monthly amount into an accrual account, established by the debt repayment company. As an example, your repayment plan may require $600/month for three years. When your account has accrued enough to pay your creditors, the company will pay off your renegotiated obligation.
- If you, like many people, decide you cannot maintain your high single monthly payment and choose to file bankruptcy, your fees will be deducted from the amount in your account. Only the “principal” you have paid will be returned to you. In short, the company will collect its large fee for doing nothing for you except holding your money in an accrual account.
Why Many Debt Workout Companies Are Under Fire
Many people who start working with a debt workout company discover after several months that they simply can’t afford to continue their plan and decide to file bankruptcy. They are often surprised to learn that the entire amount they have paid into their accrual account has been applied toward the fees that they owe the workout company, and is no longer their money — even though the creditors haven’t received a penny toward their bill.
Before you get tempted by the ads for getting out of debt, learn the facts that most companies don’t want you to know. The truth is, their so-called bankruptcy alternatives often cause more financial problems than they solve. Talk to an experienced debt relief attorney.
We Can Help You Understand What’s Best For You
Contact Kurland Law Group in Rockville, Maryland, to discuss ways the firm’s attorneys can help you resolve your debt problem. Call 301-327-2111. The firm has been helping people just like you for more than two decades.
Kurland Law Group is a debt relief agency. The firm helps people file for bankruptcy relief under the Bankruptcy Code.