top of page


Bankruptcy or Debt Consolidation Services?

If you are overwhelmed by debt, it is important to find financial relief. However, the debt-relief method you choose is equally important. When it comes to deciding between bankruptcy or debt consolidation services, you deserve to understand your rights and options and the implications of each choice.

Tell me about your financial situation today in a free initial consultation. I will help you determine a strategy that works for your specific circumstances. Contact me online today.

Can Debt Consolidation Really Benefit Me vs. Bankruptcy?

I am Timothy J. Sierra, Attorney At Law, and I can help you weigh different debt-relief strategies. As a Tampa bankruptcy lawyer with more than two decades of experience, I believe that the most effective option for most people is to file either Chapter 7 or Chapter 13 bankruptcy.

Some of the benefits of bankruptcy over debt consolidation services include:

  1. Protection from creditors: Bankruptcy immediately activates an automatic stay, an injunction that stops creditor harassment and wage garnishment, and prevents future lawsuits. Debt consolidation services cannot provide this benefit, so you can still get sued or contacted by creditors.

  2. Creditor exclusion: Like debt consolidation services, Chapter 13 involves a repayment plan. However, under Chapter 13, your creditors do not participate in determining how much money you repay. Debt consolidation services require creditor participation and agreement.

  3. Complete coverage: If you file bankruptcy, all your debts are included. If you go with a debt consolidation service, you run the risk of having only a few creditors agree to the arrangement.

  4. No accruing interest: With debt consolidation services, fees are front-loaded before the negotiations with your creditors have even started. Filing bankruptcy, however, immediately stops interest from accruing on your debts.

Filing Bankruptcy in Tampa, Clearwater or St. Petersburg? Talk to a Lawyer for Free.

If you are weighed down by debt, do not hesitate to schedule a free initial consultation with me, attorney Timothy Sierra. Call any of my Florida offices toll free at 877-492-7449 or locally at 813-258-3455, or fill out the online contact form. All calls and e-mail messages are returned within 24 hours.

*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

bottom of page