Credit Counseling and Chapter 13 Repayment Plans

Unsure of the difference between debt counseling andChapter 13 repayment plans?

It can be confusing to many who are deciding how to handle their poor finances. If you do not want to file for bankruptcy then utilizing a debt counseling service is a great alternative. They will help you create a plan to back down your debts over time, without having the blemish of bankruptcy appear on your credit record.

While bankruptcy may seem negative it does have its advantages. For example, if you miss a payment then you are protected under Chapter 13 bankruptcy rules, whereas a debt counseling service cannot offer the same protection. Another big difference is that Chapter 13 bankruptcy will often reduce your existing debts while a debt counseling agency will create a plan that forces you to pay off all your debts in full.

In the past few years consumer advocates have raised some concerns about credit counseling agencies that receive their funding from creditors, so be careful who you choose to work with.

Do you have additional questions about bankruptcy? Contact our law office now to set up a consultation with a Chicago bankruptcy attorney.