Should we think about using a credit consolidation company? 4 Answers as of August 16, 2010

My wife and I owe a significant amount of debt. We have a house with a huge mortgage, two cars, and a 401K, are we going to lose it all? What is the difference between bankruptcy and using a credit consolidation company?

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David Nelson
David Nelson | David Nelson
If you're in California, you'd probably lose nothing but the debts.

You'd have to call to go over details though to be sure. A credit consolidation company can hurt your credit as bad as a bankruptcy. However, the difference is that a bankruptcy can only be done every so often. If you are properly insured and your income is stable so that the debt situation is not going to get worse, then a bankruptcy is a great idea.

If your finances are likely to get worse, or if you are going to end up in more debt or more trouble as time goes by, then it would be too early to file a bankruptcy.
Answer Applies to: California
Replied: 8/10/2010
Halpern Law Offices
Halpern Law Offices | Daniel B. Halpern
You will spend way more money on credit consolidation and it will take you much longer than a bankruptcy. Please call my office, I have offices all over the State of California.
Answer Applies to: California
Replied: 8/9/2010
Kevin Michael Muldoon
Kevin Michael Muldoon | Kevin Muldoon
Think about using one, but don't. If your mortgage is large enough, you can likely keep all of your assets, including your 401k, and get rid of all of your credit debt.
Answer Applies to: California
Replied: 8/9/2010
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