We Can Help! Contact Us Today For A Free Strategy Session and our lawyers will help you determine whether Traditional or Government Sponsored Debt Consolidation* is right for you.
Creditors can still file a law suit and receive a judgement and put a lien on your property
Creditors may force a sale of your home or other assets
NO Legal Protection
No legal protection from creditors
Creditors will not be legally bound to accept any terms of your debt settlement offers
Creditors will continue collection efforts, lawsuits and wage garnishments
Hidden Monthly Fees
Debt consolidation firms pay themselves first
Only a small portion of your monthly payment will go towards reducing your debt
A large part of your payment will be for the debt consolidation companies monthly service fees
Tax Implications of Forgiven Debt
Any forgiven debt will be considered taxable income by the IRS
You will receive a 1099 for the amount of debt you don't have to pay and you will owe back taxes on the amount of debt canceled
Long-term Financial Consequences
Can leave you in a vulnerable position due to lack of legal protection and hidden fees
Lowers your credit score
Failure
Government Sponsored Debt Consolidation
NO Risk of Legal Actions
Government sponsored and governed by the courts
Creditors Can't Sue You
Offers you full legal protection
No lawsuits, wage garnishments or car repos
All your property is protected
NO Wage Garnishment
An automatic stay will prevent creditors from garnishing your wages
NO Property Liens
Federal Bankruptcy Laws will prevent you from receiving judgements and liens
Creditors Can Not Touch Your Home Or Assets
FULL Legal Protection
Full legal protection against your creditors
Creditors are legally bound to accept the terms of a confirmed plan
Creditors can not collect, sue or garnish your wages
NO Hidden Monthly Fees
Full protection from your creditors by the court
All fees fixed by the court
All fees paid in bankruptcy are less expensive than debt consolidation
NO Tax Implications of Forgiven Debt
Any forgiven debt is 100% tax free
NO Long-term Financial Consequences
Can offer a fresh start, allowing for rebuilding credit and financial stability
Raises your credit score
Success
While traditional debt consolidation and government sponsored debt consolidation are both strategies to manage financial distress, they come with distinct differences and levels of protection. Understanding these differences is essential in choosing the path that best aligns with your financial goals and circumstances.
Request a Free Strategy Session Today
Our lawyers will help you determine whether Traditional or *Government Sponsored Debt Consolidation is right for you.
