Jones & Jackson, LLP - Bankruptcy Attorneys

Helping people overcome their financial difficulties..........................(740) 369-6812
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Why Bankruptcy?
 

Debt Settlement/Debt Reduction/Debt Elimination/Debt Consolidation Loans

 

Serving the Counties of:

Delaware ● Franklin ● Union ● Morrow ● Logan ● Knox ● Madison

 

Communities of:

Bellefontaine ● Columbus ● Dublin ● Delaware ● London ● Marysville ● Mount Gilead ● Mount Vernon ● Powell ● Westerville ● Worthington


In today's society, there are many people who have debt obligations that they are struggling to meet.  Many turn to the use of credit cards and end up with large amounts of credit card debt.  It seems like no matter how hard they try, they just can't find the combination to get relief from their debt.  There are many resources available to people searching for ways to eliminate their debt.  They talk to friends and family.  They search on the internet.  There is a stigma attached with bankruptcy.  They look for alternative means.  They find numerous options like debt settlement plans, debt consolidation loans, debt reduction programs, debt elimination plans, and merged money accounts.  These are all very attractive primarily because they are not bankruptcy.  These are all non-bankruptcy debt relief options, and there are too many to discuss here.  Before you elect to utilize a debt settlement plan, which includes debt reduction and debt elimination, consider the pros and cons. 
 
Before you sign a contract for a non-bankruptcy debt relief plan, contact us at 1-888-431-0921.
 
 
 
Comparison between Bankruptcy and Debt Settlement
  BankruptcyDebt Settlement
Out of Pocket Expense

Chapter 7 - Approximate fee range of $1000 to $2000.

Chapter 13 - Approximate fee range of $3000 to $4000 (plus plan payments to creditors over 3 to 5 years).

Approximately $1500 to $2000 setup fee and continuing monthly payments until the plan is completed.

 
Time Frame

Chapter 7 - 4 to 6 Months.

Chapter 13 - 3 to 5 Years. 

3 to 4 months to get the account set up and 18 months or longer to complete.

Will Interest and Fees Continue to Accumulate on My Debts?No, bankrupcy freezes your accounts. Yes 

Can I be Sued to Collect a Debt After I Start the Plan?

Yes, but you will have the protection of the bankruptcy court.

Yes, recommendation to seek legal advice. 

Can My Creditors Garnish My Wages?

No, not after your case is filed.

 

 Yes

Can My Creditors Attach to My Bank Account?

No, not after your case is filed.

 		 Yes

Stops Debt Collection Activity

 Yes 

 No

Stops Debt Collection Lawsuits

 Yes  No 

Conversion to Another Plan

 Yes

Most likely you will lose the money you have already contributed.

Are My Creditors Required to Cooperate?

 Yes No

Will My Credit Score be Negatively Impacted?

 Yes

 

 Yes

When Can I begin Rebuilding My Credit?

Chapter 7 - approximately 4 to 6 months after you file for bankruptcy.

Chapter 13 - During the plan.

 

When and if your plan is completed.  You are not making payments to specified creditors during the plan; therefore your score will suffer.

Will My Debts be Discharged/Settled?

Yes if your Chapter 7 is approved.

Yes if you complete the Chapter 13 plan (can convert to Chapter 7 in hardship).

Perhaps. 

 

For more information regarding the success rates of these alternatives, see The Truth About The Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy, by Steve Rhode.

  

 

Debt Consolidation Loans

Debt consolidation loans are not included in the comparison above.  These are exactly what they say, a loan in which you consolidate your debts into.  They are typically secured by your home, car, or other valuable asset.  Therefore they consolidate unsecured debt, which could be discharged through bankruptcy, and convert it into secured debt. They consolidate your short term as well as longer term or revolving debt into a longer term loan.  It is true that you may achieve a lower monthly payment, however you may be paying a significant premium over the years.  A big risk is if you default on this new loan.  The consolidation loan creditor has the right to pursue the collateral or security (your house, car, or other valuable asset).  This new lender may ultimately sue you to foreclose on your home or seek possession of your car.

 

Feel free to contact us at 1-888-431-0921 or by email to discuss your financial situation.

 

 

 

Jones & Jackson, LLP
2 West Winter Street, Suite 306
Delaware, Ohio 43015-1965
Toll Free 1-888-431-0921
Phone 740-369-6812
Fax 740-369-1292
 

 

We are a Debt Relief Agency.  We help people file for relief under the Bankruptcy Code.

 

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult a Bankruptcy attorney for advice regarding your individual situation.