Is bankruptcy better than going through a debt repayment program?
Almost always, and for several reasons. First, in a Chapter 13 plan, the Court will force your unsecured creditors to accept the plan even if you are paying them a very small percentage or making absolutely no payments toward their actual claim. A private service has no such power. In addition, once you file the bankruptcy, none of your creditors may file suit or take any further action against you. A private service has no power to stop any one individual creditor from taking such action. Further, in a Chapter 13, all interest stops on unsecured debt. That means the debt will no longer continue to grow. Best of all, at the conclusion of the typical Chapter 13 plan, not only has the interest been removed, the underlying debt will have been discharged as well.
