Bankruptcy Basics

Difference Between Debt Consolidation and Filing Chapter 13 Bankruptcy

Posted by Craig Black | May 12, 2023 | 0 Comments

What is the difference between debt consolidation and filing Chapter 13 bankruptcy? While debt consolidation companies can offer temporary relief, they often come with disadvantages that can outweigh their benefits. On the other hand, filing for Chapter 13 bankruptcy can provide long-term benefits and stability for those struggling with overwhelming debt.

One of the main disadvantages of debt consolidation companies is that they often charge high fees for their services. These fees can be in the form of upfront charges or ongoing monthly fees. In addition, some debt consolidation companies may require individuals to take out new loans to pay off their existing debts, which can result in even more debt and financial strain.

Another disadvantage of debt consolidation companies is that they may not be able to negotiate lower interest rates or monthly payments with creditors. This means that individuals may still be paying high interest rates and struggling to make monthly payments, even after enlisting the help of a debt consolidation company.

Furthermore, debt consolidation companies often require individuals to close their credit card accounts, which can have a negative impact on their credit score. This can make it difficult for individuals to obtain credit in the future, such as a car loan or a mortgage.

On the other hand, filing for Chapter 13 bankruptcy can provide several benefits. One of the main benefits is that it can stop foreclosure proceedings and provide individuals with the opportunity to catch up on missed mortgage payments. This can help individuals keep their homes and provide stability for their families.

Filing for bankruptcy is a difficult decision, but sometimes it can be the best way to get a fresh start and get your finances back on track. If you are considering filing for bankruptcy, then chapter 13 bankruptcy may be a good option for you. The chapter 13 bankruptcy process allows you to reorganize your debt and create a manageable payment plan that fits your budget. Craig Black Law Firm LLC, with 4 locations in Conyers, Marietta, Sandy Springs, and downtown Atlanta, is a trusted and experienced Atlanta law firm that can help guide you through the chapter 13 bankruptcy process.

One of the benefits of filing for chapter 13 bankruptcy is that it can help you keep your assets, such as your home or car, while still paying off your debts. Additionally, it can provide you with protection from creditors and stop collection efforts, such as wage garnishments or foreclosure proceedings. Another benefit of chapter 13 bankruptcy is that it can improve your credit score over time as you make on-time payments on your reorganized debt.

Craig Black works with you one-on-one and has the experience to help you navigate the complex chapter 13 bankruptcy process. Craig will work with you to create a customized payment plan that fits your specific financial situation and can help you get back on track. With four convenient locations in Conyers, Marietta, Sandy Springs, and downtown Atlanta, Craig Black Law Firm LLC can help you get your life back! Call him today at 678-888-1778

About the Author

Craig Black

I had never thought much about bankruptcy law, but after graduating from law school, I moved to Chicago. My first job as an attorney was with a law firm that specialized in bankruptcy. Within a few years, I went from being the youngest attorney in the firm to a managing attorney. During my time t...


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