Is debt consolidation the same as chapter 13 or

[tammy]

7 bankruptcy?

[smartypants909]

No, not at all. With debt consolodation, you will still pay off all your debt.

[Phonebreaker]

No it's not. Debt consolidation is a loan to used to combine many payments into one, which generally creates a lower monthly payment and is easier to manage. Consolidation actually reflects positively on your credit because you eliminate other areas of outstanding debt. Bankruptcy is a last resort option which destroys your credit for years, but is the only choice for some.

[rockyfella25]

Debt consolidation programs are usually just a big loan that pays off other smaller loans. They can be very beneficial to borrowers, but these programs also .can cost you more in the long run.they put all your bills into one payment.A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

[SpotsB4myeyes]

Not in the least. You can have your debts consolidated with a home equity loan, etc. (shop around for the best loan APR you can find), giving you one payment per month -- or you get a lawyer and go the formal, legal route of declaring bankruptcy.Bankruptcy can bruise or severly damage your credit rating, making getting a mortgage or other loan very expensive (they'll jack up the interest rates) or impossible.

[bsandyman]

Dept consolidation is basically taking all your dept and paying it off with a new loan. The new loan then has the advantage of being on one bill from one agency. It is also possible that this new loan will have a lower interest rate, or lower monthly payments, or shorter or longer term then you original depts. Dept consolidation is something a lending agency can do to help anyone who wants a more convenient loan.Bankruptcy is where the legal system steps in between you and your creditors so you have a chance to get back on your feet. It is to help people who are at risk of losing everything start over.