What is the difference to debt consolidation?

Chapter 13 is a court supervised debt consolidation. It’s advantage over private debt consolidation companies is that only the court can make sure that creditors will not attach your wages to garnish your income or foreclose on your home. With a chapter 13 plan you are under the protection of the bankruptcy court.

Many times people who hired a debt consolidation company find themselves being sued by a creditor who decided not to participate or to cancel participation in the debt consolidation program. In these cases the people are without protection and have to file bankruptcy in order to avoid enforcement of the judgment against them.