How is Chapter 13 bankruptcy different from Consumer Credit Counseling?
There are a number of very significant differences between Chapter 13 bankruptcy and Consumer Credit Counseling: • Chapter 13 is not voluntary on the part of the creditors. Creditors have no choice as to what you do or do not do so long as your bankruptcy plain complies with the bankruptcy laws. You are also under automatic stay protection while you are making payments. • Chapter 13 is not a debt consolidation: it is a re-organization. It is possible that you pay only 5% of your debt back and receive a discharge on the remaining 95%. This is very different from Consumer Credit Counseling. • Chapter 13 deals with all debts, not just unsecured debts. Therefore, house payments, car payments, taxes, student loans, credit card debts, and medical bills are also paid through the Chapter 13 plan. • Payments are made in a Chapter 13 bankruptcy while under court-ordered protection from your creditors. This means that all garnishments, levies, repossessions, foreclosures, and all other forms of c
