In a Chapter 13 case, the bankruptcy court can provide relief to individuals that a private debt consolidation service cannot provide.

A Chapter 13 case can stop:

• Home foreclosures
• Lawsuits against you
• Wage and bank account garnishments
• Unsecured creditors (including credit cards, payday loans and tax debts) from assessing additional late fees, penalties and interest.

A Chapter 13 case can force your unsecured creditors to accept a Chapter 13 plan that only pays a portion of the debt and to discharge the unpaid portions of those debts. Private debt consolidation has none of these powers.