This is not a good presumption. While many Credit Counseling Agencies have established relationships and terms with credit card companies to set up repayment plans, they have no legal authority to bind creditors to these terms or force them to agree or even continue with the plan once it is established. At any time, a creditor can decide to opt out of the payment plan and sue you or get a wage garnishment, likely derailing the entire budget plan.

Chapter 13 provides unique advantages:

• All unsecured creditors (Credit cards, medical bills, second mortgage(s) or home equity loan(s), personal loans, older tax debt, loan deficiency debt, etc.) are forced to comply with the terms of the confirmed Chapter 13 plan. They are all paid back at 0% interest and often paid at a percentage of the total amount owed to the creditor.
• As soon as you file and for the duration of the program (and, of course, after successful completion of the program), you have court protection from your creditors. This means no phone calls, protection from foreclosure, vehicle repossession, garnishment, etc.
• Court oversight of the repayment process and a court-appointed Trustee handling all monetary funds. This ensures that your money goes to pay your bills and that all fees are regulated…no scams.
• Repayment spans 36 – 60 months. At the completion of that timeframe, whatever balances remain on your unsecured debts are legally eliminated through a court discharge.
• You have the unique ability to legally remove a second mortgage(s) or home equity loan(s).
• Credit restoration is a built-in aspect of the program as you providing consistent, timely payments to your creditors and reducing your debt-to-income ratio through-out the program and at the completion of the program with discharge of remaining balances. There are no more penalties or late reports to the credit reporting agencies.

We encourage our clients to explore all of their options. We offer a free comprehensive consultation to review your finances, discuss your options and develop a game plan. Call us today at 866-261-8282 to speak with a licensed attorney. You can then compare our services to other options such as Credit Counseling Debt Management programs. While we are confident Chapter 13 provides many superior benefits to other available plans, if we don’t feel that your circumstances are a good match for the bankruptcy options, we will let you know. Our goal is simply to help people find the best debt resolution option available to them.