Debt Consolidation vs. Bankruptcy

If you’re under severe financial stress, you might be considering bankruptcy. Bankruptcy has serious and devastating effects on your credit rating. After filing, your bankruptcy will probably stay on your credit report for seven to ten years, and can be reported for the rest of your life to prospective employers and insurance companies. You should look at all other ways to manage your debt before filing for bankruptcy.

The FreedomQuest Debt Management Program may be an alternative to bankruptcy. The debt consolidation program can reduce monthly payments, lower interest rates and help you get back on track with bills. This type of debt management should not harm your credit rating. Many consumers find that they can get a car or home loan after being on the FreedomQuest Debt Management Program for a year.

Learn more about the FreedomQuest Debt Management Program by calling 1-800-320-9929. A certified credit counselor from Consolidated Credit Counseling Services will provide you with a free debt consultation and advise you whether or not a debt consolidation program would best fit your financial situation.

Filing for Bankruptcy Isn’t Easy

Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, all bankruptcy applicants undergo a means test to ensure that bankruptcy is their only option. They are required to undergo a credit counseling briefing before filing for bankruptcy, and must complete debtor education before the case is discharged. Your attorney will be required to conduct a “reasonable investigation” to ensure that your financial situation is correct and warrants bankruptcy.

Bankruptcy may give you relief from collection actions of your creditors. However, there are better ways to stop collection calls. The FreedomQuest Debt Management Program works with your creditors, so once you’re on the program, the debt collections calls usually stop.

Consider all your financial options before filing bankruptcy. The credit counselors at Consolidated Credit Counseling Services are here to help. Call 1-800-320-9929 to get a free debt consultation, and find out if a debt consolidation program would best fit your financial situation and what other options you may have.

Please Note: Bankruptcy is a complicated legal process governed by federal laws and state regulations; therefore, it is difficult to file for bankruptcy without the help of an experienced bankruptcy attorney.