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Debt collectors and "debt consolidaters" continue to spread disinformation about bankruptcy because it is in their economic interest to confuse debtors about their rights. Here is what one leading consumer magazine had to say about such agencies:
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Did you know?
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Hiring a debt-workout agency
is often a bad idea
If you’re considering working with an agency to get credit counseling, or consolidate or renegotiate your debt, watch out. Over the years Consumer Reports has documented the credit-counseling industry’s hidden fees, poor advice, and even outright fraud. Many advise rolling high-interest debt into a second mortgage. But by using your house as collateral for what was unsecured debt, you risk losing your home. Some firms can persuade creditors to cut your debt. But if you miss payments they can later back out of the deal and demand full payment, potentially landing you in bankruptcy court after you’ve already paid a large portion of your debt. |
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