Is Chapter 13 Bankruptcy Better Than Debt Consolidation For Florida Residents?

Florida consumers have been watching the late-night television commercials and getting suckered into debt consolidation. With wild promises to repay all of your bills at one low monthly fee, people who live near me in Orlando, Daytona beach, Ormond Beach, Palm Coast, and Port Orange have been calling asking me why I think debt consolidation is bad for Florida residents.

The answer is simple, but hidden from the public. In debt consolidation, your bill collectors are required to voluntarily accept payments. And most Florida residents don’t realize that not all bills are included in debt consolidation.

And you wonder why so many of these “plans” fail, sending people to my office.

Chapter 13 bankruptcy is a far more effective means of accomplishing debt consolidation because the bankruptcy court forces your creditors to accept the payments.

That’s right, in Chapter 13 your creditors are legally required to fall in line.

Who’s got the power now?

During a Chapter 13 consultation you’ll have the chance to sit down with a lawyer and learn your options – all of them. Your concerns will be addressed, and you will be able to make an informed decision regarding such issues as bankruptcy, foreclosure, debt management and more.

Filing a Chapter 13 bankruptcy lets you consolidate your bills and pay all of part of them over 3 to 5 years. Once the bankruptcy has been successfully completed most of your remaining balances will be wiped out forever.

That’s right, pay for 3-5 years and then the balance is gone. Period. And your creditors don’t get much say in the matter. So long as your repayment plan is approved by the bankruptcy judge the creditors are forced to accept it.

If you have a steady income and valuable non-exempt property, Chapter 13 may be the best option for you.

Once you file for bankruptcy, creditors must stop contacting you to collect the debt you owe. Instead of facing multiple payments to all of your creditors, you will instead face a single monthly payment that is actually manageable. Not only can bankruptcy stop creditor harassment and consolidate your bills, but it can also stop foreclosure.

  • Maybe you’re in foreclosure and are looking for a way out. Consolidating your bills won’t help.
  • How about student loans? Bill consolidation won’t do a thing with those, either.
  • Repo man trying to get the car? Forget bill consolidation – it won’t lend any assistance whatsoever.
  • Being sued by a credit card company? Can’t consolidate that debt.
  • Child support payments? Taxes? No consolidation in the world is available for those.

I’m not saying that Chapter 13 is the be-all and end-all, but there are things that consolidating just won’t handle. Don’t get suckered in by a late-night television pitch person spelling doom and gloom, take the time to get the answers you deserve.

After all, it’s your life. If you don’t take care of yourself, who will?

Call 407-749-0080 now for a free consultation.