Debt Consolidation v. Chapter 13 Bankruptcy

If you are struggling under mounting debt, you may want to consider filing for Chapter 13 bankruptcy or taking advantage of a debt consolidation program.  Both of these are effective ways to get your finances under control in order to eventually eliminate your debt.

Chapter 13 bankruptcy and debt consolidation are a good option for anyone who has a steady income, but who cannot afford to repay their debts under their current circumstances. Through a debt consolidation program, an individual consolidates all of their outstanding loans into one new loan.  Now, instead of having to repay multiple creditors, they can focus on paying off just one loan, usually with a lower interest rate.

Chapter 13 works very similarly. In this type of bankruptcy filing, all of debtor's debts are consolidated into one lump sum. Then, with the help of the bankruptcy court, a repayment plan is created based on the debtor's level of income. Over the next three to five years, the debtor makes payments under the repayment plan, and a bankruptcy trustee collects the payments and distributes them to the debtor's creditors. Once the debtor has finished making payments, their case will be discharged and they will no longer be in debt.

Contact a Bankruptcy Lawyer for Your Debt Relief Needs

If debt consolidation or filing for Chapter 13 bankruptcy is something you are interested in learning more about, click here to find a bankruptcy attorney near you.  You deserve a life free of the stress and anxiety associated with mounting debt.  A bankruptcy lawyer can help you get there!