Bankruptcy Counseling

Four years ago, President Bush signed into law an act relatively unnoticed at the time which would come to have profound repercussions upon the ability of ordinary Americans to declare Chapter 7 bankruptcy. As just one instance of this so called Bankruptcy Abuse Prevention and Consumer Protection Act, borrowers are forced to now work with a bankruptcy counseling agency before their paperwork would even be accepted, much less approved, by the county clerk’s office. Although these de facto credit counseling courses are generally a waste of time and money (money the debtors shall have to somehow come up with alongside the cost of gas and babysitters and whatever else would be necessary to free up the hours for bankruptcy counseling), the Congressional lords’ whim was nonetheless made law.

Of course, though the government passed the Bankruptcy Abuse Prevention and Consumer Protection Act to supposedly aid borrowers and punish scofflaws, the credit card industry threw all of their considerable weight (full wallets rather making a difference) into pushing through such annoying and fundamentally purposeless stipulations as the bankruptcy counseling provision. Why else would our duly elected representatives of the people believe that ordinary Americans obviously possessing the wherewithal to make their way through the fifty some pages of the bankruptcy petition must also require some redundant and condescending bankruptcy counseling class before they could try and unburden themselves of unsecured debts likely resulting from our politicians’ failures. With spiraling unemployment, dipping housing prices, mortgage lenders (as with so many industries) in great turmoil, and the continued absence of health care assistance breaking the backs of domestic budgets every moment of every day, the grand majority of American heads of household know the problems and potential solutions of their financial affairs well enough without having to sit and down and monetarily support some failed economist’s bankruptcy counseling monologue.

For that matter, the lion’s share of the companies validated by the federal government to formally offer these bankruptcy counseling courses end up to actually be consumer credit counseling groups! While the irony may not immediately strike most average citizens unfamiliar with consumer finance, credit counseling company officers – even if they pretend to sideline in bankruptcy counseling – would say absolutely anything to ward potential clients off bankruptcy protection. Since most consumer credit counseling businesses’ extensive fees are largely paid by creditors overjoyed that their mutual clients continue to slowly subsidize the lenders’ bottom line through extended terms that (regardless of some smoke and mirrors reduction of rates) ratchet forward through compound interest, there’s some clear conflict of interest at play.

Be sure and ask the purported bankruptcy counseling authorities just how they make their money and take with suspicion every piece of advice the bankruptcy counselors grant regarding either Chapter 7 protection or such genuine debt relief saviors as settlement negotiation companies. Top firms representing the settlement negotiation industry avoid such patronizing elements of the debt management field; they’re too busy lopping off fifty to seventy percent of their clientele’s debt loads. Best of all, any unsolicited mention of bankruptcy counseling detailed by the unpolished men and women staffing the negotiation chairs of settlement companies would likely be directed at the lenders rather than their own clients: who, once again, need proper debt relief far more than anything that bankruptcy counseling courses could say.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

Avoid Bankruptcy

Debt Relief

Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.