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Fresno Bankruptcy Lawyer

Posted by: California Bankruptcy Attorney on May 04, 2010

Fresno County bankruptcy court processed more than 4,000 bankruptcies from September 2008 to September 2009, and no one expects the bankruptcy filings to slow any time soon. Ask any bankruptcy lawyer in California about bankruptcies during the current reception, and the story is the same: in nearby Tulare, Madera, and Kings Counties, for example, there were a total of nearly 3,000 bankruptcy filings during the same time period.
Fresno Bankruptcy Lawyer Warns against Debt Consolidation

There's no doubt that declaring bankruptcy is an unpleasant process for the majority of people. Besides the tangible losses in financial resources and credit scores, there's also the intangible losses that strike a person's confidence, reputation, and overall emotional health.

Given the consequences of bankruptcy, it's no wonder that those facing difficulty are reluctant to seek out a California bankruptcy attorney. Instead, they may turn to debt consolidation plans – some of which are proven scams.

To find out if bankruptcy is right for you, call a Fresno bankruptcy lawyer today at (877) 427-2752 to get a free consultation with a bankruptcy expert.

Fresno bankruptcy lawyer Peter Fear told “The Business Journal” that “probably 98% of debt consolidation places out there are rip-offs” (Source: The Business Journal, April 12, 2010). Fear went on to tell the “Journal” that because debt is controlled by creditors, even legitimate debt consolidation companies aren't always able to work out a favorable deal for their clients.

A California bankruptcy lawyer can explain to his or her clients that credit card companies and other large lenders will frequently sell off debts to collection agency at below market prices. The collection agency, then, only profits by collecting the debt in full. Given this model, what incentive would a collection agency have to work with a debt consolidation company?

As Fresno bankruptcy lawyer Peter Fear warns, creditors usually don't all agree, and if any given creditor sues, the whole agreement “goes down the drain”.

Bankruptcy May be the Best Bet

As hard as bankruptcy may seem, Fear's comments highlight the fact that hiring a Fresno bankruptcy lawyer and filing for a Chapter 13 or Chapter 7 bankruptcy may actually be the best solution for many people facing dire financial straits. With the help of a qualified bankruptcy attorney in California, some clients can get many of their debts completely discharged, while others can have their debts drastically reduced.

Fresno residents in financial trouble should remember that bankruptcy laws are in place to protect consumers, not to punish them. Although bankruptcy has many unpleasant consequences, the consequences of delaying an inevitable bankruptcy are generally far worse. For example, as soon as someone files for bankruptcy, all collections and foreclosures are temporarily halted. While the case is still in court, debtors have a chance to catch up on their bills, which may even lead to keeping their home, vehicle, or other possessions.

Advantages to bankruptcy may outweigh the disadvantages. If you are having financial difficulty, a California bankruptcy attorney is your best option for keeping your assets and getting out of your troubles.

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