Chapter 13 vs Debt Management Programs

Helping You Find the Right Approach to Debt Relief

If you are struggling with debt, you have probably been receiving letters and phone calls from companies promising you a quick way out of debt. Trying to make sense out of these complicated offers can be discouraging, especially when you are not sure whether any of these debt management programs will actually solve your problem. Before you make a decision about enrolling in such a program, seek the advice of a skilled attorney.

At Nicolet Law Office, S.C., helping people get relief from crippling debt is what we do. We have found that most people are better served by going through the bankruptcy process than using the services of a debt management company. A Chapter 13 debt reorganization is usually a much better way to deal with debt and put yourself on the road to credit restoration and a brighter future.

Some of the Advantages of Chapter 13 Bankruptcy

Debt management programs often create more problems than they solve. These programs are problematic because:

  • They are voluntary for creditors.
  • Creditors can still harass you with phone calls and letters.
  • A creditor can still demand full payment at any time, even when you are in the program.
  • These programs are often funded by the creditors themselves.
  • Your wages can still be garnished while enrolled in the program.

Chapter 13 bankruptcy has many advantages over debt management programs, including:

  • Court protection, which prevents creditors from demanding full payment
  • Participation is mandatory for creditors.
  • Ability to stop wage garnishments and home foreclosures
  • Interest rates are reduced to 0 percent, even on credit card debt.
  • You get three to five years to repay debt, and then any remaining unsecured debt is eliminated.

Whether you are in Eau Claire, Hudson, Amery or anywhere else in western Wisconsin, or in the Twin Cities area of Minnesota, the team at Nicolet Law Office, S.C., is ready to help you chart a course toward a healthy financial future. When you visit us, we will analyze your unique situation and give you honest advice about what to do next and how we can help.

Contact a Wisconsin Bankruptcy Attorney for a Free Consultation

Before deciding to participate in any debt management program, consult with an experienced bankruptcy lawyer first. For a free consultation at Nicolet Law Office, S.C., please call 715-802-0872 or toll free 800-456-6956. You can also contact our law firm online. We offer flexible payment plans and reasonable flat fees.