Learn About the Different Kinds of Credit Counseling
There are two kinds of credit counseling services: the honest agencies that you need to deal with as a condition of filing for bankruptcy relief, and the debt consolidation companies that will usually leave you worse off than you were before. Before you deal with the latter, and to get the most out of the former, contact an experienced attorney at the law firm of Steven E. Mirsky, LLC.
Free consultation: call 866-654-2003 in Rockville, Frederick or Laurel
With three offices to serve clients in northern and western Maryland, our law firm helps people get through the credit counseling and financial management training now required under bankruptcy law. The approved agencies won’t usually do you a great deal of good, but if you want to give them a try as an alternative to bankruptcy, we can help you.
We find that their main benefit is to relieve pressure while your credit counselor works directly with your creditors. Unfortunately, they can seldom work out arrangements that will benefit you more than a discharge of debts together with the protection of the automatic stay Link to Immediate Benefits Practice Area of bankruptcy.
In any case, you need to present proof that you’ve worked with a credit counseling service prior to filing your bankruptcy petition. If you’re in Chapter 7, you also need to show proof that you’ve completed a financial management training session before you’ll be granted your discharge. We can help you with both of those requirements, which are actually quite simple.
Steer clear of the debt consolidation services — they won’t help you
The other kind of credit counseling is for the birds. Usually in it for profit or operated by credit card companies, debt consolidators work out arrangements with your creditors, tack on a fee, and collect your hefty monthly payment every month. Most people find that they’re only making interest payments and making no progress on their debts while contributing to the profits of your middleman. Bankruptcy represents a much better option for most people.
To learn more about credit counseling, good, bad and indifferent, contact a knowledgeable bankruptcy lawyer at the law firm of Steven E. Mirsky, LLC.
