Comparing Credit Management Companies Versus 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 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 area, people who want personalized attention and clear counsel come to the law firm of Bryan P. Keenan & Associates, P.C. Our experience and dedication to our clients set us apart.

Let's work together to decide which option fits your needs.

Call 412-923-4941 to arrange a free consultation with a lawyer today.

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

Bankruptcy Offers Additional Debt Protections

There are many advantages to filing for Chapter 13:

  • Collection activity must cease and creditor harassment must stop.
  • An automatic stay stops 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, 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.

Which Option Will Work Best For You?

Meet with a lawyer to discuss the pros and cons of each debt relief option before making a decision. To arrange your no-cost consultation, call 412-923-4941 or send us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.