An out of court “bill consolidation” through a debt restructuring company typically works out voluntarily arrangements with your creditors.  These companies often actually are funded by the credit card companies in an effort to collect debt for the companies.  Also, there are often hidden fees.  Most importantly they cannot force all creditors to agree with the plan often causing the plan to collapse when one creditor starts a garnishment proceeding.

An effective alternative to these solutions is a Chapter 13 reorganization. In a Chapter 13, we restructure your debt with the power of the Federal Court System. Creditors are treated based in their class status under the Bankruptcy Code.  All creditors are required to participate and no one can just say no.  Even creditors like the IRS are required to go along with the plan that the Court approves.  The Chapter 13 plan can also allow you to stop the threat of foreclosure and deal with auto loan creditors that typically won’t participate in a “bill consolidation.”