Bankruptcy vs debt consolidation, which one is right for your current debt problems?

713 Debtor Bankruptcy

Are you looking for bankruptcy vs debt consolidation information? What are your choices as a debtor planning to file bankruptcy? The goal of this website is to help you learn about bankruptcy versus debt consolidation and other alternatives.

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New here? Start with these articles to learn about US bankruptcy, debtor bankruptcy alternatives like debt consolidation, debt settlement, debt negotiation, and debt management. You'll also learn the causes of debts that can lead you to file bankruptcy and how to recover from it.

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Bankruptcy vs Debt Consolidation

Here’s a side by side comparison of bankruptcy versus debt consolidation. If you want to compare bankruptcy with other non-bankruptcy alternatives (such as debt settlement), visit this free debt consolidation community site. You will learn a lot from their friendly members. Many of them have successfully completed a debt consolidation program and did not choose bankruptcy. You can also avail of their free debt counseling services. Help them help you get out of your debt!

Pros and cons of bankruptcy vs debt consolidation

	Bankruptcy	Debt Consolidation
Can stop annoying creditor phone calls?	YES. It is illegal to call you after you file bankruptcy.	YES. You are represented by the debt consolidation attorney. All communication should be handled by the company.
Can reduced interest rate?	Wiped out on a successful discharge.	YES. Will fall to 9% or lower.
Can save on principal amount?	Wiped out on a successful discharge or through a repayment plan.	NO
Easy debt planning	Not applicable.	YES. The debt consolidation company will take care of your monthly payments.
Third party fees	Filing fee and attorney’s fee.	YES. Monthly fees and setup fees.
Effect on credit score	Highly negative.	Positive

Effects on your credit rating

	Bankruptcy	Debt Consolidation
Entry on credit report	Bankruptcy is reported.	A comment stating that you’re paying an account through a credit-counseling agency appears on your credit report.
Time until the negative entry lasts on credit report	It will remain for 7 years under Chapter 13 and 10 years under Chapter 7 bankruptcy.	It remains until the account is paid in full. The company will also negotiate to get your accounts reported in your favor.
Affects credit score negatively	Lowers it by almost 100 points.	Since 1999, Fair Isaac Corp. has ignored any credit-counseling information when calculating a consumer’s FICO credit score.
Effect on future credit	It may make it difficult to qualify for new credit.	Getting and qualifying for a new credit will become difficult at start.

Free e-Books About Debt Consolidation

	Title: Take Creditors and Collection Agents to Small Claims Court ISBN: 0-9774442-9-5 Authors: Debt Consolidation Care’s Community Members About the book: There are instances when a collection agent or a creditor keeps harassing you which sparks off a feeling of insecurity. In this e-book one of the community members narrates how he fought back by taking legal action against one of them in a small claims court. Price: Free to download here
	Title: Debt Consolidation Sample Letters for Free ISBN: 0-9774442-1-X Authors: Jason Holmes (Contributing writer) and Peter Samuels (Debt Samaritan) About the book: This e-book is a complete collection on different debt related letters. These sample letters will guide you to write a good letter to your creditor. Price: Free to download here
	Title: Credit Score The Quintessential Therapy for a Happy Pocket ISBN: 0-9774442-0-1 Authors: Jason Holmes (Contributing writer) and Peter Samuels (Debt Samaritan) About the book: This e-book is a complete study on credit score and the importance of a good credit score. The advantages of a good credit score are numerous and the book guides you in achieving it. Price: Free to download here

You don’t need to give away any email address when you download them. You may also sign-up to their “Free Debt Counseling” offer if you want to.

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Disclaimer: The information provided on 713 Debtor Bankruptcy is not intended to be legal advice, but merely conveys general bankruptcy information related to consumer debt issues commonly encountered. Read the Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005 (BAPCPA) for authoritative answers. Topic: Bankruptcy vs debt consolidation, which one is right for your growing debt problems?

The word bankruptcy is commonly misspelled as bankrupcy (without the 't'), bankrupcky (with extra 'k' and without 't'), bankruptsy (with 's' instead of 'c'), bankrupcey (with 'e' and without 't'). Related bankruptcy words and phrases: bankruptcies, bankruptcys, insolvency, insolvencies, insolvencys, proceedingses, proceedings, legal proceeding, bank failures, foreclosures, legal intervention, credit couceling.