Sometimes clients of mine try other methods to eliminate their debts, including debt consolidation.  In a debt consolidation plan all of the debtor’s debts are lumped together and the debtor is only required to make one monthly payment in order to pay it down.  However, due to changes in circumstances, some debtors cannot proceed with a debt consolidation plan and thus would lean towards filing for bankruptcy.  So a common question I receive is whether or not debts that have been consolidated can be included in your bankruptcy, and the answer is YES.

Debts that have been consolidated or currently in a repayment plan are dischargeable in a bankruptcy.

When you fill out your bankruptcy papers be sure to include each creditor that you owe monies to and not just the debt consolidation company.

If you are thinking of filing for bankruptcy in South Florida and would like to schedule an appointment with a local bankruptcy attorney, then please contact Ofer Shmucher at Shmucher Law, PL by calling our office at 305.741.5553 or 954.309.5559.  We offer free consultations and can meet clients in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.