How Does Chapter 13 Differ From A Private Consolidation Service?

How Does Chapter 13 Differ From A Private Consolidation Service?

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.

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