Other debt consolidation company mislead me

Hello, welcome to the site...since you have registered a credit counselor will be contacting your shortly to discuss your options.
It's unfortunate that you didn't have success with the first company you got involved with. I know exactly how you feel, I myself had a pretty bad experience with the first company I was with. Wish you the best of luck and feel free to ask any questions..we are all here to help.

When you signed the contract with your consolidation company, they are responsible to take care of your accounts and arrange repayments with your creditors. Are you thinking anything legal against them at this stage?

I was told that consolidating my debt would help my credit. Now I can't get any loans because I'm considered bankrupt.

Its not considered bankruptcy. It just shows you you are in a debt management plan to prevent people from digging a deeper hole in debt while they are supposed to be trying to get out of debt. This is to protect the client from themselves. Unfortunately you can`t have your cake and eat it to. You shouldn't be applying for credit cards or loans while trying to get out of debt while in a dmp. Once you complete the DMP it comes off your report and you can apply for loans and credit cards again if you want although I don`t suggest it.