Credit card debt, medical debt, and other problems lead some people to end up in major financial troubles. Some people try to combat these troubles by utilizing credit counseling services or bankruptcy to gain a fresh financial start. The number of people who have had to use these methods of debt relief has begun to decline.
The credit counseling industry is facing a new reality of declining business instead of increasing business. These losses have lead to downsizing and mergers of the companies. InCharge Debt Solutions of Orlando has sliced its workforce nearly in half. Another company operating in Orlando, CredAbility, has laid off top executives and cut its workforce. The Atlanta-based CredAbility has merged with Virginia-based ClearPoint.
These companies provided credit counseling to people who were trying to take control of debt without legal help. They also provided pre-bankruptcy counseling for people who were trying to seek protection under bankruptcy laws. With the decline in people who are filing bankruptcy, the credit counseling industry is taking a hit on the number of people seeking these required counseling sessions.
The good news about the upswing in the economy and decrease in personal bankruptcy filings is that it has encouraged the credit counseling agencies to look for new ways to encourage people to use the services. A spokesperson for ClearPoint says the company is working on a program to offer financial advisory services to Hispanic communities. These services will include information about saving for college or retirement.
If you are facing the need to seek a fresh financial start through bankruptcy, contacting an experienced Orlando bankruptcy attorney can help you to learn your responsibilities and rights during the bankruptcy process.
Source: Orlando Sentinel, “Credit-counseling agencies scramble to deal with own financial crunch” Richard Burnett, Jan. 12, 2014