Many people who can pay their bills are faced with the dilemma of filing bankruptcy or choosing some form of debt consolidation. A debt consolidation program (sometimes called debt management) means working with a law firm or debt consolidation service who will arrange lower payments to your creditors. Once you start a debt consolidation program it is very likely that your creditors will stop harassing you by phone or mail. At Miller & Miller we handle debt consolidation. We take care of the paperwork with your creditors so you will not have to deal with your creditors directly. The advantages of debt consolidation is that it is not a bankruptcy. It is discreet, confidential and there is no information given to your employer, although a debt consolidation program will generally appear on your credit report. Unlike a bankruptcy where you lose all of your credit cards, a debt consolidation program may allow you to keep a credit card for future use.
Bankruptcy does have certain advantages. For many it is the only answer. It absolutely 100% will stop all current and future legal collection proceedings. The biggest advantage of bankruptcy is that it will give you a fresh start. You will not be liable for any previous debts or liabilities as long as you included them in your bankruptcy. You will likely will not lose any assets if you file bankruptcy. Other then filing fee and legal fees you will not have to pay any of your debts back. Bankruptcy is a matter of public record and people may be able to access that information. Your credit rating will be adversely affected but often times it won't be affected any worse than if you do a debt consolidation. It is difficult to get credit for the first 1 or 2 years after you file a bankruptcy. As with consolidating your debts, declaring bankruptcy will not eliminate all of your debts. Some debts which you may still be liable for include taxes, child support, alimony and student loans. State laws may vary, but generally allow a bankruptcy person to keep equity in certain things such as a house or a car. Miller & Miller offers both debt consolidation and bankruptcy services.