You may have made the effort to go through debt consolidation or credit counselling in the hopes that it would repair your current financial situation. However, it can be even more frustrating when you emerge from debt consolidation without any significant progress forward.

Many individuals considering filing for bankruptcy in New York are doing so because they have attempted to repair their debt and financial situation to no avail. Debt consolidation may only be a band -aid for significant financial problems.

While it appears like the lower interest rate on a portion of the debt and a lower payment overall can help you, this is not always guaranteed to help you recover. If you stay in debt longer, for example, you end up paying the lender more, which can be problematic if you are unable to make the payments in the first place. Many individuals who are in the process of considering bankruptcy do not realize just how extensive their financial problems are until it is too late.

Attempting to work through credit counseling or debt consolidation may seem like the right move if you are thinking about bankruptcy in New York, but it can actually set you back farther than you might imagine. If you are already buried in financial bills and are unable to get on top of your situation, then it is in your best interest to set up a meeting with a New York bankruptcy attorney. Although this can be an overwhelming process to consider, it is worth getting all of the information upfront so that you can make an informed decision about your future. If credit counselling and debt consolidation have not worked for you, then it’s time to consider bankruptcy. Jayson Lutzky is a Bronx bankruptcy lawyer who offers free in-person consultations. If you have any questions about personal bankruptcy, then call 718-514-6619 to set up an appointment. Learn more about getting a fresh start at