When a person experiences money problems, it can be difficult to determine the severity of the problem. If the issues persist for a few months, the late fees and other associated expenses can quickly add up. Individuals might panic, and feel compelled to reach out for help, but not know where to turn to get the assistance they need.
Debt relief companies know that these individuals are in a challenging situation. They make many promises, saying that they can help people deal with their financial problems and avoid having to file for bankruptcy. However, when clients hire these companies, they often find that they receive very little help for the money that they are spending.
These companies often charge their clients very high fees that are based upon the amount of money that is owed. The clients are told to stop paying their bills, instead giving all of the money over to the company. The companies do not forward the money to any of the debtor's creditors, which can result to collection actions or repossessions.
Several of these organizations have faced penalties from the Federal Trade Commission because of these practices. The individuals that they were supposed to help have found themselves in a much worse financial condition, with very few options available.
You might feel very uncertain about what you need to do at this time. It is important that you remember that debt relief companies are not looking out for your best interests. They do not have any responsibility to get you out of debt. If things do not work out, they keep the money that you paid them, and leave you searching for a new way to bring these problems under control.
If you start to have difficulty paying your bills, you should seek the advice of an experienced bankruptcy attorney as soon as possible. An attorney will be able to analyze your complete financial situation, and then help you make the decision that is best for you.
When you work with a bankruptcy attorney, you be able to see all of the available options. Your attorney can explain the procedures and consequences of the possible choices that you have, and this can help you feel confident that your needs are being addressed.
Even if you think that bankruptcy is not right for your situation, you should still work with someone who is experienced at handling these kinds of cases. You may not be aware of some of the possible things that you can do to bring an end to your financial challenges.