Choosing Between Bankruptcy And Debt Consolidation
When contemplating filing for bankruptcy, do not overlook the option of seeking a debt consolidation plan to pay off outstanding balances on the bills. Understand, there is a difference between debt consolidation and a consolidation loan, where debt consolidation can often remove late payment fees and penalties while providing a way of paying off the principal loans at a lower monthly payment.
Going through a loan consolidation loan specialist is also cheaper than bankruptcy procedures and your debts can be eliminated, while also stopping most creditor from harassing debtors for payments. They big difference is that with a Chapter 13 bankruptcy, the creditors have to accept the courts repayment plan, where in a consolidation plan a lender can refuse to participate.
With debt consolidation, agreeable lenders will calculate the balance owed without most late payment and penalty charges, bringing the total down. Most are willing to do this to insure they receive the majority of debt from the debtor without having to have the court proceedings.
Most creditors also understand that once in Chapter 13...
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