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If you are a resident of the Bronx, New York area, and are considering filing for Bronx bankruptcy, we recommend you contact a bankruptcy expert who will, during the free initial consultation, carefully examine your situation, explain you your options, and help you choose the one that is right for you. The article below is provided by our Bronx bankruptcy lawyer. |
Should I hire a credit counselor to avoid Bronx bankruptcy?
Yes, a credit counselor can help you avoid Bronx bankruptcy. They may be able to restructure your debts. A credit counselor can walk you through the process paying off your debts and help you develop a personal financial plan for repaying your bank loans, credit cards, and other debts without declaring personal bankruptcy.
If you decide to work with a company to consolidate your debts to avoid filing for Chapter 7 bankruptcy, find a credit counselor that:
•Is Licensed. Anyone can call themselves a credit counselor. You only want to work with someone who is experienced, and is a member of an approved professional association or accreditation agency.
•Actually helps you with your unique situation. A knowledgeable counselor should be able to offer you ways to deal with your debt that make sense for your budget and situation. They should not simply try to sell you a “one size fits all” debt solution.
•Helps you avoid further debts. A counselor should clearly explain to you why you need to avoid more debts. Better yet, a counselor should make you cut up your credit cards, so you can’t get into any further trouble. Be wary of any counselor who suggests that you can deal with your debt and then go on spending as you have before.
If you can find a credit counselor who will do all of the above things, they may be a good place to start.
But, beware. Some credit counselors work for not-for-profit or charitable organizations, and they truly want to help you. Others may work for businesses, and they are more concerned with making money. Ask them this: who is funding them? If most of their funding comes from the credit card industry, they are probably more concerned about keeping the credit card industry happy.
Many credit counselors receive a “kick back” or a percentage of the debts you repay directly from the credit card companies. It’s important that you understand where their loyalties lie.
If you are beyond help by a credit counselor, you should seek the advice of a Bronx bankruptcy lawyer. By law, your bankruptcy lawyer represents you, and no one else. They do not represent the credit card companies, so they are a good place to start in your search for the appropriate options for you.
We recommend you contact a Bronx bankruptcy lawyer today regarding Bronx bankruptcy and alternatives to personal bankruptcy.
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