Legal Question in Credit and Debt Law in California
Debt consolidation company
My credit cards have gotten out of hand. My friends advised me to consolidate my debts before filing for bankruptcy so I have been looking online for companies. One company has actually contacted me and gave me information. I then checked on the Better Busi Bureau for info. They said that it is illegal for companies to charge any fees before they fulfill their contracts. The companies that I have looked at all require a ''retainer fee.'' Does that count as fees beforehand? How do I find a good company to consolidate my debts? Help!!!
2 Answers from Attorneys
Re: Debt consolidation company
Although consolidation makes doing the paperwork easier because there are less creditors. I always advice my clients never to apply for new credit, or use their credit cards if they intend to go Bankrupt. Also there is a presumption that obtaining or using credit within 3 months of a bankruptcy is FRAUD!! If you are found to have done fraud, your bankruptcy will be thrown out!
Re: Debt consolidation company
There is no reason to "consilidate" your debts before filing for bankruptcy. If you have to pay a fee to accomplish the consolidation, it makes even less sense.
If you are truly contemplating filing a bankruptcy, you would be far better off retaining an attorney who specializes in bankruptcy to advise you and to prepare the bankruptcy petition.
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