Difference Between Debt Management & Bankruptcy

Transcript:

One of the most frequent questions we hear from potential clients is:

"What is the difference between entering a debt management program and filing a bankruptcy?"

The difference can be summed up to one word: Protection.

When you file a bankruptcy case you are immediately protected by a federal court order which directs your creditors to instantly cease all actions there are taking against you. Your creditors must respect this order. This protection is not available with a debt management plan.

In a debt management program, one or more creditors may not want to want to participate in the program and may file a lawsuit against you. In bankruptcy, the creditors have no choice.

Call Seymour & Associates today for a free consultation.