With so much of a person’s financial well-being depending on their credit report, people in financial trouble have started looking to debt consolidation companies. These organizations have become popular based on lofty promises of improving your circumstances without going through a bankruptcy filing. They claim to accomplish this by negotiating repayment plans with your creditors, who will accept a lower total amount. However, it is important to note that their participation in such a program is voluntary and they don’t offer the same guarantees as a bankruptcy, which is mandatory according to the federal government.
Not long ago, a 45-year old female postal worker from Cleveland needed some assistance with various debts as well as some past due taxes. She met with a few other bankruptcy firms, who advised her that she would need to participate in a chapter 13 bankruptcy that will include a repayment plan. She ultimately decided to proceed with debt consolidation because it also involved repaying her debts, but wouldn’t result in a bankruptcy on her credit report. Despite the fact that she paid the debt consolidation company almost $10,000, many of her creditors did not want to be involved and began filing lawsuits against her for the full amount that she owed. The woman now found herself in worse financial shape than before and in desperation, she contacted the trusted Ohio bankruptcy lawyers with Luftman, Heck & Associates to help her sort this out.
After a consultation, LHA attorneys explained that a repayment plan would not be necessary for a Chapter 7 filing since it involves eliminating her unsecured debt instead of repaying it. While the other bankruptcy firms evaluated her eligibility for a Chapter 7 using her gross income, the attorneys at Luftman, Heck & Associates went the extra mile and also examined her monthly expenses. This was a meticulous analysis, but it became clear that she was, in fact, eligible for a chapter 7 rather than a chapter 13 filing. LHA attorneys initiated the process and also represented the woman in a lawsuit against the ineffective debt consolidation company, which resulted in an award of $25,000. In addition, LHA negotiated with the respective tax agencies and since a large portion of her tax debt would be removed during the bankruptcy, his client agreed to a repayment plan for the remaining balance. Once her bankruptcy was finalized, most of her other debts were discharged, providing a great deal of financial assistance.
Prior results do not guarantee a similar outcome in your case. Individual results may vary based on the facts, injuries, jurisdiction, venue, witnesses, parties, and other factors. The results and client testimonials provided are not necessarily representative of the results obtained by all clients or their satisfaction with the firm’s services.