Credit Counseling plan vs Chap 13

[gak555]

What might be the advantages vs disadvantages of filing chap. 13 vs working w/ a creit counselor ?

[SinkingFast]

As far as your credit report and how potential lenders will treat you, none.

The CCCA's may be able to negotiate some interest differences, you'll pay of in 5 years in full to all your Creditors, provided you make it thru the plan. And, you CCCA payment may not be significantly different/month that what you're currently spending out in minimums. That was the case for us and a DMP we had prepared. The DMP actually cost $100 more per month.

In Ch 13, you're only paying back a portion of the total debt, based on you disposable income. What you can actually "afford" to pay based upon a review of your monthly expenses. Also, Ch 13 comes with Automatic Stay protection. A DMP does not.

[aa06a47]

gak555, don't go into one of the ccc and volunteer for one of them pay back plans unless you know you can do it. I'm told by my attorney, that if one of the ccc places puts you in a plan, your stuck with those payments, and bk won't get rid of them. Just be careful. Talk to your lawyer before agreeing to it.

[Minnymouth]

Since when did CCC's overrule the Bankruptcy Court????
News to me!!!!
They may have you in a plan, but when you file bankrutpcy then your estate is under the control of the Trustee...........the CCC just becomes another creditor!!!

[moochie]

I was in one of these plans before I filed. My payment was the same as my bankruptcy plan, but I still had a $350 car payment to make. I emailed them that I have filed a chapter 13 and no longer need their service. The next day, I got a callback to verify the info, and they dropped my account. All I lost was a few hundred dollars that I had paid them. They sent me a letter to show where I cancelled my account. That was it.

[aa06a47]

Since when did CCC's overrule the Bankruptcy Court????
News to me!!!!
They may have you in a plan, but when you file bankrutpcy then your estate is under the control of the Trustee...........the CCC just becomes another creditor!!!

Minnymouth, that is what my attorney told me. She was referring to the ccc that is done pre bankrptucy. She told me that if the ccc's set up a plan, it was honored by the bk court. In other words, if the ccc told you that you could pay your debts through a dcl or other means, that you had to do this. Of course, as things change, perhaps you wouldn't be bound by it (medical expenses pop up ect..)

[Minnymouth]

The credit card counseling is required by law only..... they do not set the standards for the bankruptcy court.... They can suggest to the Court that you use a credit counseling plan to settle you debts, but I don't beleive you can be forced to use a counseling service to PAY your debts thru bankruptcy.
If this is the case a lot of Trustee's are going to get screwed on their settlement money......and chapter 13 expenses.
I'll have to do a little reseach on this subject.

Anybody else know anything about this????