Texas Debt Relief: Be Wary of Payments to Debt Consolidation Firms
Contrary to what you may believe, obtaining debt relief services from a licensed bankruptcy attorney may be even more affordable than working with a debt consolidation mill.

May 21, 2011 /24-7PressRelease/ -- Consumers who are burdened by overwhelming debt have many options to consider, but all debt relief strategies are not created equal. Bankruptcy has a series of important advantages over debt consolidation schemes, the most important of which may be working with a licensed attorney.

The potential for fraud when dealing with unregulated debt negotiation companies means that consumers must proceed carefully. Debtors have a new ally in the federal Consumer Financial Protection Bureau (CFPB), which will be charged with implementation and enforcement of financial laws that impact consumers.

But the best strategy is to avoid the need for legal recourse in the first place. Debtors should never provide upfront funds to someone who promises to reduce payments and pay off existing debt without first thoroughly researching the company's background.

Better yet, a debtor should start looking for debt-relief advice by consulting with a bankruptcy attorney. A licensed lawyer can explain many of the advantages of the Chapter 7 and Chapter 13 bankruptcy processes, including:
- The automatic stay, bringing all collection activity to a legal halt
- Protection from repossession of cars and home foreclosure
- Secure debt settlement via the bankruptcy trustee
- Setting the stage for improving your credit rating

A debt relief attorney can also advise you that bankruptcy may not be the best option under your unique circumstances, and inform you about alternative strategies such as debt consolidation, refinancing, loan modification and stopping creditor harassment. Contrary to what you may believe, obtaining these services from a licensed attorney may be even more affordable than working with a debt consolidation mill.

The Smartest Path to Financial Relief Is Also the Straightest

Bankruptcy is not only a tried and true strategy for rebuilding your financial health -- it is a cornerstone of federal financial policy with deep roots in our legal system. While debt relief agencies may try to dazzle you with the latest quasi-legitimate scheme to eliminate debt before the sun sets, proceeding through bankruptcy is secure, time-honored and ethical.

If unexpected health care costs, an expensive divorce, a costly accident, an untimely layoff or any other unfortunate experience has brought you to the brink of financial peril, act now. Arrange a consultation with an experienced Texas bankruptcy attorney to learn more about the extent of your troubles and prospects for relief.

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