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Which Is Better: Bankruptcy Or Debt Consolidation?

When you’re facing financial difficulty, every decision can feel fraught with stress. As you consider methods to ease your debts, allow a seasoned bankruptcy lawyer to guide you.

At Minion & Sherman, our northern New Jersey attorneys bring years of experience to the practice of bankruptcy law. We know that you have options when wondering what to do about your debt, and we take the time to sit down and get to know each client and their situation. This allows us to provide personalized guidance and a plan tailored to your needs and goals.

We Can Help You Weigh Your Options

Bankruptcy and debt consolidation are both tools you can use. However, they will have different effects on your situation. For instance:

  • Are creditors contacting you nonstop? If you file bankruptcy, something called an “automatic stay” goes into effect, and creditors cannot collect until your bankruptcy claim addresses their portion. Creditors then normally will stop harassing you. Debt consolidation services don’t have the ability to hold off creditors.
  • Are your wages being garnished? The automatic stay from bankruptcy will also stop wage garnishment. However, debt consolidation services cannot offer this.
  • Do you have many types of debt? In bankruptcy, most types of debt are covered, and creditors cannot refuse to participate. In debt consolidation, creditors can decide to not agree to the terms.
  • Worried about what you’ll pay? In bankruptcy, the court determines your repayment plan if one is involved in your case. In debt consolidation, your creditors have a say in your repayment plan.
  • Concerned about interest? Bankruptcy stops interest from growing on your debts. Debt consolidation services include the interest in the consolidation, so you still pay it.

Ease Your Mind With Professional Advice

Our team has helped countless clients move on from crushing debt, and we can help you seek a favorable outcome to your situation as well. We would be pleased to speak with you and offer our advice about your situation. To reach us, call our northern New Jersey office at 973-559-5791 or send us a message through our online contact form. We will respond as promptly as we are able to.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.