Credit Management Companies Versus Filing Chapter 13

Credit Management Companies vs. Filing Chapter 13

If you are considering whether to try to eliminate your debt through filing for Chapter 13 bankruptcy or using a credit management company, it is important to know the benefits and drawbacks of each choice. Having the most amount of information at your disposal can go a long way toward helping achieve peace of mind when making this critical decision.

Throughout Pittsburgh and the surrounding areas, people who want personalized attention and clear counsel come to the law firm of Bryan P. Keenan & Associates. Our experience and dedication to our clients sets us apart.

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Some debt management companies do provide limited amounts of relief, but the vast majority of these credit management companies do not offer the same protections as filing for Chapter 13 bankruptcy.

There are many advantages to filing for Chapter 13:

  • Collection activity must cease and creditor harassment must stop
  • An automatic stay that will stop foreclosures, garnishments, and repossessions
  • Lawsuits concerning your debts are stopped and cannot move forward
  • The principal balance you owe freezes once you file
  • Unsecured debts, such as medical bills and credit cards may need to be paid back over time or many need to be paid back over time, usually anywhere from 36 to 60 months, at a fraction of the outstanding balance, with the remainder of the debt wiped out after the plan is completed
  • You are also allowed to keep the collateral on secured debts, such as a car or a home, while making payments on outstanding debt
  • In some cases, your credit score may increase as you pay down the settled amount

Our Pittsburgh Chapter 13 bankruptcy lawyer will carefully explain these advantages, but the primary benefit is that once the plan is completed, all remaining debt is discharged. This cannot be said for credit or debt management companies once you pay their fees, interest, and higher payment amounts.

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E-mail us today or call us at 1-866-753-6857 to set up a personal discussion to learn more whether credit management companies or filing for Chapter 13 bankruptcy is the right choice for you.