Debt Management may allow you to repay your debts over time just as Chapter 13 however:
1. Debt Management companies pay themselves first and have gone out of business taking your money with them.
2. Your credit is still damaged with Debt Management.
3. Debt Management is taxed as income for any debt that is “forgiven.”
4. Debt Management lacks the power of federal court orders.
5. Creditors are court ordered to a Chapter 13 and they cannot opt out or refuse to participate in a court ordered Chapter 13 repayment plan.
6.Debt Management requires repayment at 50% and a Chapter 13 may pay less than 10%.
7. 90% of all Debt Management plans fail while Bankruptcy allows conversions and hardship discharges if you cannot complete a Chapter 13 repayment plan.
Stephen M. Dunne, Esq.
Dunne Law Offices, P.C.
1500 JFK Blvd, Two Penn Center, Suite 200
Philadelphia, PA 19102