If you are experiencing financial hardship, you may find yourself overwhelmed by phone calls and letters from various companies offering you a plan to get your budget back on track. Sorting through all of these offers and making sense of their complicated terms can be extremely confusing. Before you make a choice about any of these debt management programs, seek the advice of lawyers with experience handling tough financial challenges.
At Ambrogio, Pletter & Associates, LLC, in Stratford, Connecticut, helping struggling people is what we do. We help clients file bankruptcy and build strategic plans to deal with debt and credit restoration issues. In most cases, filing Chapter 13 bankruptcy is a much better choice than enrolling in a debt management program.
Our Bridgeport bankruptcy lawyers provide personalized service designed to meet your individual needs and goals. Since 1982, we have helped thousands of people get relief from debt and take positive steps to improve their financial futures. See what our past clients have to say and then schedule a free consultation with our experienced lawyers. You can call us at 203-502-7436.
Credit Counseling Programs Are Not The Answer
In Connecticut, a relatively new law makes many credit counseling programs offered by credit card companies and collection agencies illegal. In order to comply with the law, a debt adjustment agent needs a license from the state's banking commissioner. Because so many of these agents are soliciting customers online and over the phone, however, they often are not in compliance with the law.
This is just one of many reasons why filing Chapter 13 bankruptcy is preferable to these other debt management programs. Some of the other advantages are:
- Bankruptcy is a court-protected payment plan that prevents creditors from demanding full payment. This means that, unlike other programs, Chapter 13 prevents your creditors from demanding payments and garnishing your wages.
- Court-ordered participation by the creditor.
- Ability to stop home foreclosure.
- Interest rates reduced to as low as 0 percent, even on credit card debt.
- Restructures debt, and after three to five years, any remaining unsecured debt is eliminated.
Perhaps the most significant difference between bankruptcy and credit counseling programs is that if you miss a payment while on a credit counseling plan, you are in default. In Chapter 13, you simply have to make your "best efforts" to repay your debts for a three- to five-year period.
Contact An Experienced Stratford, Connecticut, Bankruptcy Attorney
We can help you find the light at the end of the tunnel, help you take control of your finances and get a fresh start. To arrange your free consultation, call 203-502-7436 or contact our law firm online.