• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

Should I Try Debt Consolidation Instead Of Bankruptcy?

An excerpt from Bankruptcy: A New Beginning by Seth Hanson

Many people ask me whether they should try debt consolidation or file bankruptcy. The answer to that question, as with most legal questions, is: it depends.

Debt consolidation refers to taking a loan (secured or unsecured) from a new creditor and using the loan proceeds to pay off other debt. In this manner, someone who uses debt consolidation “consolidates” his or her debt into one loan. If the terms of the new loan are better than the terms of the old loans, then debt consolidation will be better than the prior situation. For example, if the interest rate is lower or the repayment term is longer, then the total monthly amount paid under consolidation could be much lower than the monthly payment with the several creditors. Debt consolidation may also preserve your access to credit and enable you to borrow from additional sources.

However, debt consolidation likely will not address your root problem—you have insufficient income to pay your debts. Similarly, most people who are struggling to make their current debt payments should not use debt consolidation as a tool to take on more debt. Taking on more debt is not a viable solution to the problem of having too much debt. (I wish politicians would understand this basic concept.)

Proponents of debt consolidation point to the simplicity of the arrangement—having one payment instead of many. However, debt consolidation may actually end up costing more money over the long run. Often times the consolidation loan reduces your monthly payment by extending the payback term. So while you are paying a lower monthly amount, overall you are paying back more money because you are paying for a longer period
of time.

Debt consolidation is also likely not a long-term solution to the problem. In fact, dozens of people have contacted me several months after they have tried debt consolidation saying they wish they would have filed bankruptcy a long time ago instead of trying debt consolidation. These people ended up filing bankruptcy anyway and could have saved a lot of time and money by filing bankruptcy at the outset.

Whenever I am asked about debt consolidation versus bankruptcy I encourage my clients to make an honest evaluation of whether they can handle paying off the debt, either through consolidation or otherwise, in a reasonable amount of time. If they can pay off the debt in a reasonable time frame, then bankruptcy is not the right option for them. If they won’t be able to pay off the debt, then it makes greater financial sense to file the bankruptcy.

For more information contact your Yuba City bankruptcy attorney.

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