What about Debt Consolidation and Debt Resolution companies?

Debt Consolidation or Resolution companies operate under the same standard business model. The Debt Companies collect a monthly payment from you. After a number of months, say 6 to 12, the Debt Company has a few thousand dollars of your money. The company then contacts your smallest creditor and attempts to work out your debt by reducing the amount owed. The Debt Company may even be successful at first.

Why does the Debt Company not succeed?

Simple.  Unless you have only one creditor, your other creditors will not wait their turn in line. One by one they will start to sue you.

The result: all the money you gave to the Debt Consolidation or Resolution Company is wasted.  Thousands of dollars gone and you are still in debt.   Even worse: You are now getting sued and must rush your bankruptcy case to prevent your wages from being garnished or your assets frozen.