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What is the difference between Chapter 13 and Debt Management? If both are 5 year repayment plans, then why choose one over the other? Chapter 13 appears more intrusive and restrictive than Debt Management, is there some benefit to Chapter 13 that Debt Management doesn't offer?

Big difference. Debt management is done under voluntary cooperation. The creditor can withdraw or refuse the program at any time. They can also decide to sue you at any time during the program.

Sub: #1 posted on Mon, 08/27/2012 - 07:05

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Is it true that you have to go through a DMP if you want to qualify for Bankruptcy?

Sub: #2 posted on Tue, 08/28/2012 - 00:15


Is it true that you have to go through a DMP if you want to qualify for Bankruptcy?

You have to take a 40-50 minute "credit counseling" class (usually "on line") and obtain a certificate of compeletion for the class before you can file bk. This is not a "Debt Management Program". It is just a way for these so-called "credit counseling agencies" to make a few bucks off the backs of those who can least afford it. Once in a while I will have a client tell me the class was informative but, for the most part, they tell me it is a waste of time and money. But, Congress thinks taking the "class" is a good thing - go figure.


Sub: #3 posted on Tue, 08/28/2012 - 04:51

despritfreya despritfreya

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Chapter 13 is a consolidation of your debts. You make monthly payments to a trustee for your secured debts (home, car, furniture) and you unsecured debt (credit cards, medical bills, etc.) are paid about a penny on the dollar. Once you complete your bankruptcy between 3-5 years, your debts are "discharged" basically meaning that they are considered as settled and paid in full.

Debt Management cannot offer you what a Chapter 13 bankruptcy can, period.

I have never recommended anythone ever due debt consolidation with a company. It just doesn't usually work.

Sub: #4 posted on Tue, 08/28/2012 - 12:16


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