Debt consolidation can have different meanings, and be approached in several ways. We are here to help clarify these options for you and help you to make the correct decision for your situation. There are non-profit companies who offer debt consolidation programs, but they come with a price. You won’t pay any fees to these organizations, but your debt (especially credit card debt) will be negotiated down and restructured. A new payment stream will be put into place, and you can not fail on those payments under any circumstances or your agreement is void. You can consolidate your debts under a Chapter 13 Bankruptcy filing (reorganization of debt). This is many times the preferred method of consolidating your debts and have a chance to emerge whole, keep your credit rating intact, and do the right thing.

At Stohlman Law Firm, we can help you to review ALL of the options that are available to you regarding your debt scenario. Everyone’s case is different, and you’ll need an experienced professional to assist you in making the right decision. We care about your future and your peace of mind. While some programs seem quick and easy, and even fee-free, there is a price to be paid for taking that route. But you want to be sure that is the best alternative for you.

Just a few thoughts on the different debt consolidation alternatives. If you do a packaged consolidation through a non-profit company program, your credit WILL BE RUINED. The credit card companies may accept a lower interest rate, reduce your balance the restructure their payback, but they charge off your debt as if you never paid it back at all. They have no choice under credit reporting laws, and you have no protection under the Bankruptcy Laws whatsoever if you take that option. It has worked for some, but in most cases, we find that the long-term damage isn’t worth the concessions that you receive.

For debt consolidation, a Chapter 13 Bankruptcy filing may be exactly what you need. It gives you immediate protection from harassment from your creditors, and buys you time to work with your attorney to construct a plan going-forward that will work for everyone involved. It is NOT a liquidation (Chapter 7) so once you present a repayment plan to the creditors and the court approves it, you can emerge from your Chapter 13 filing and there is no permanent record. This can be a complex process, but WELL WORTH IT if it’s the appropriate course of action for your situation. We encourage you to call our office for a FREE, no-obligation review of your situation and get the legal advice that you need in a troubled time.


Call The Stohlman Law Firm at (863) 603-0856 anytime to discuss your case details.