Can “debt consolidation” companies lower my payments without filing Bankruptcy?
You and the debt counselor are at the mercy of the Creditor to reduce your payments. Only Bankruptcy can force a Creditor to accept payments according to your ability to pay or inability to pay. Debt counseling, debt dettlement and credit repair may, in the long run, damage your credit score more. Most debt counselor repayment plans keep a percentage of your payments as their fee (talk about a conflict of interest!). Most repayment plans fail within a year. Only Bankruptcy orders the creditors and debt collectors to stop calling or be subject to court sanctions. If you have a Bankruptcy repayment plan it is within your ability to pay, even if you can’t repay it all.
