Debt Management Firm Says Bankruptcy the Best Solution

22 May Debt Management Firm Says Bankruptcy the Best Solution

In Charge Debt Solutions, one of the most reputable of debt management firms which try to keep people out of bankruptcy through so-called “debt settlement plans” now says that bankruptcy is the best solution for many of the people it counsels.  The Los Angeles Times reports that In Charge now tells 42% of the people it counsels that bankruptcy is the best solution for them.

In Charge – contrary to most debt management firms – is approved as a provider of pre-bankruptcy credit counseling as well as post-bankruptcy financial management planning.  Many debt management firms promise to help people avoid bankruptcy but end up taking the consumer’s money.  The New York Times wrote about the serious problems in this industry.    So it is refreshing to be able to point to a debt management firm which actually seems to have the individual’s interest at heart.  

Bankruptcy lawyers don’t advocate that people file bankruptcy in all cases.  A person with a manageable amount of debt ought to try to resolve that debt without bankruptcy.  I tell clients that bankruptcy should be treated as a special event – an extraordinary remedy – and the last resort to resolve financial problems. 

Bankruptcy is “strong medicine” and has strong consequences.  So I recommend that it be used with care and only after careful consideration of both the costs and benefits of bankruptcy

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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