Bankruptcy vs. Credit Counseling

The Truth About Credit Counseling

"Debt reduction through credit counseling is the worst scam against consumers since extended warranties. The only party that profits is the credit counseling service." — Attorney Nicolas V. Dizonno.

Some people think bankruptcy is the worst thing that could happen to them. It's not. Credit counseling can be far worse.

Credit counseling, also called debt reduction or debt management, is aggressively marketed as an easy solution to your financial troubles. Credit counseling agencies say they have relationships with credit card companies and other large creditors that allow them to reduce the amount you need to pay each month. Often they do not have the relationships they say they do.

There are many reasons to avoid credit counseling and consider bankruptcy instead. For example:

1. It's focused on the past. Credit counseling uses today's dollars to pay yesterday's debts. Bankruptcy can wipe out your debts completely. You can use your income to build for the future.

2. You can do it yourself. You can call your creditors directly and attempt to renegotiate your debt. You may succeed at about the same rate as the credit counselor, without paying their fees.

3. There are no guarantees. If you miss a payment, the creditor may decide to scrap the plan and reinstate the former interest rate. With bankruptcy, you are protected by federal law and guaranteed a specific result.

Our lead attorney, Nicolas V. Dizonno, says he has never met anyone who was happy with the results of debt reduction through credit counseling.

Credit Counseling Prolongs the Suffering — Bankruptcy Makes Debt Go Away

Don't be fooled by credit counseling services. Get financial advice you can rely on from a lawyer who is dedicated to serving your best interests. Contact the Law Offices of Serpe, Dizonno & Associates in Itasca and Maywood, Illinois, for a free consultation. We represent clients in Cook County and DuPage County, Illinois.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.