Credit Counseling and Debt Consolidation are becoming scams to rip of Debtors while Bankruptcy remains an alternative .... for now

June 17, 2004 -- Americredit has filed for Chapter 11 bankruptcy. Many of their customers paid into their individual plans and have little to show for their payments after being promised that they could pay off their debts at the rate of 50% on the dollar. Several other credit counseling companies have also filed bankruptcy after promising hope with their corporate officers owners and presidents being the only ones to profit.

Debt Consolidation loan companies have also offered similar programs. Unsecured credit card companies will offer 50% pay off plans funded by 20% loans which are secured by the debtors home. Often the Debtor only trades the unsecured debt for a mortgage and eventually loses his home. Packed inside these home loans are high origination fees.

But for now many people can still file bankruptcy with payment plans that pay back as little as 10% or less. Often the effect on their credit is no worse than the Debt Consolidation or loan programs. For more information on bankruptcy and a free manual http://www.Laws-Bankruptcy.com




This article courtesy of http://lowdebtconsolidation.com.
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