What’s the Difference Between a Debt Consolidation and Chapter 13 Bankruptcy?
On the surface Chapter 7 and Chapter 13 bankruptcies seem the same – both require you to enter a payment plan to repay your creditors, but that is where similarities end.
In debt consolidation, creditors can still harass you and can still file lawsuits against you. Debt consolidation companies will also add on monthly fees for their services. Many companies rely on people who are financially vulnerable as their business model.
If all debts are from unsecured creditors: credit cards, payday loans, or medical debt you could discharge ALL of them in a Chapter 7 bankruptcy and become debt-free in 100 days.
Can Filing Bankruptcy Stop Creditors from Harassing Me?
Yes. The moment your bankruptcy is filed with the court a powerful “Automatic Stay” takes effect. From that moment on all creditors are prohibited from harassing you in any form. They cannot call, write, or sue you over debts. All debt collection from creditors ceases.
Can Filing Bankruptcy Stop Foreclosure on my Home?
Yes. Chapter 13 bankruptcy can stop foreclosure on your home or other property and will grant you time to catch up on arrears.
Can I Get Rid of My Student Loans In Bankruptcy?
Unfortunately student loans cannot be discharged in bankruptcy. But if you are carrying large amounts of student loan debt and are experiencing financial difficulties, you may want to enroll the Income Contingent Repayment (ICR) Plan provided by the Education Department.
Can Filing Bankruptcy Stop Foreclosure on my Home?
Yes. Chapter 13 bankruptcy can stop foreclosure on your home or other property and will grant you time to catch up on arrears.
Is Bankruptcy the Right Action for my Debts?
Every person and case is unique and I understand that debt not only affects your credit rating, it can affect your entire life. I pride myself on being the strongest advocate on behalf of my clients and optimize their bankruptcy to its fullest.
I offer FREE financial consultations, so before you make any decisions for your financial future, come have a chat with me and I can help guide you on your best options.
Helping You Get A Fresh Start! 