Is a Debt Management Program the same thing as filing bankruptcy?
Bankruptcy is a proceeding in a federal court in which the assets of an individual experiencing financial difficulty are sold, and the individual is relieved of further liability to their creditors. In addition, bankruptcy will stay on your credit report for seven to ten years and greatly hinder your ability to obtain new credit. A debt management program is an actual repayment of the debt and a “cleaning-up” of your credit report.
A- Bankruptcy is a proceeding in a federal court in which the assets of an individual experiencing financial difficulty are sold, and the individual is relieved of further liability to their creditors. In addition, bankruptcy will stay on your credit report for seven to ten years and greatly hinder your ability to obtain new credit. A debt management program is an actual repayment of the debt and a “cleaning-up” of your credit report.
