How does a Chapter 13 differ from other debt consolidation programs?
Chapter 13 is different than other debt management programs because we are able to use the law to provide you with legal protection from creditor actions (foreclosures, garnishments, harassing phone calls, etc.) and better, more uniform terms than other programs can offer. For instance, all of your unsecured debt (credit card bills, medical bills, etc.) is reduced to 0% interest for the duration of the Chapter 13 program. This avoids the “snowball” effect of late charges and high interest rates. The same goes for your mortgage arrearages if you own a house – they are paid back at 0% interest throughout the plan with no additional late penalties. Chapter 13 allows you to focus on reducing your overall principal debt.
