Bankruptcy or Debt Solution Company plan

Debt solution companies - The GAO issued a report last year saying that only 1 in 10 customers of a debt solution company finished the program. The GAO also found that the debt solution companies tended to collect its fees first, then attempt to settle with the creditor. The customer may pay the debt solution company for months or a year with a 1 in 10 success rate.

Telephone collection calls - and other forms of debt collection continue while the customer is in the plan, until the bills are fully paid.

Bankruptcy - The automatic stay provision of the Bankruptcy act stops telephone collection calls and all attempts to collect a debt. This blog does not attempt to predict the outcome of any case, but "automatic" is, well, "automatic" and is better than 1 chance in 10.

The decision to file a bankruptcy - is more complicated than any blog can discuss. The ability to automatically stop harassing telephone calls can allow decisions to be made in silence, and away from the demands of creditors.