Re: debt relief

No. Bankrutpcy and debt consolidation are not the same thing. Some people talk about a Chapter 13 bankruptcy as a type of debt consolidation. In Chapter 13, you list all of your creditors and you propose a repayment plan based upon your income and assets. Your creditors can object to the proposed repayment on certain grounds. If the Court approves your plan every creditor included in the plan is bound by its terms. Creditors cannot refuse to participate. In a debt consolidation plan, you work with someone who attempts to work with your creditors on your behalf. You should be very careful in selecting any debt consolidation company. Avoid any company that requires you to pay a large sum up front. Also confirm which of your creditors they can work with. Many companies are not able to get all of your creditors to participate. In addition, many debt consolidation companies simply collect money from you until they have enough on hand to make an offer to your creditors. Each month your credit score is decreasing as the number of late payments and negative information is reported by your creditors. As a general rule, a debt consolidation company cannot do anything with your creditors that you cannot do yourself. When you file a bankruptcy case, your creditors may report the bankruptcy but they cannot continue to report other negative information about you. If you have other questions regarding Chapter 13 or Chapter 7, please go to my website at dionnelaw.com. Melinda Dionne