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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My husband and I both have very high credit card debt. We

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My husband and I both have very high credit card debt. We have been in touch with a consolidation company called Financial Security, Inc., and they will supposedly work with our creditors to lower the principle amounts due and get us out of debt in approximately two years. We are trying to figure out what the best route to take is as we need to do something. Thank you. XXXXX & Bill
Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

Typically a consolidation company cannot do any more for the consumer than the consumer could do for himself. Usually a person can negotiate with the creditors at least as effectively as the consolidation company and save the fees.

You may also want to consider your bankruptcy options. As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your states exemptions.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt period of time. However, you may retain assets that exceed your exemption.

If you let me know what state you reside in, I will be happy to direct you to a list of bankruptcy exemptions for your state.


Best wishes for a Happy and Healthy New Year!
Ellen and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
If you let me know what state you reside in, I will be happy to direct you to a list of bankruptcy exemptions for your state. -- Connecticut. Thank you for sending this information in a timely manner.
Here is a list of assets that are exempt from the claims of creditors in Connecticut:
http://www.thebankruptcysite.org/exemptions/connecticut.html



Best wishes for a Happy and Healthy New Year!