In this video, Dan explains the difference between debt consolidation and Chapter 7 Bankruptcy.
Debt consolidation and Chapter 7 bankruptcy are not the same thing. Waldorf Maryland Bankruptcy Attorney, Daniel J. Guenther, explains the difference between the two.
Dan Guenther has practiced bankruptcy law in Southern Maryland for over 30 years. In this video, Dan explains the difference between debt consolidation and a Chapter 7 bankruptcy. This is a question often asked by his clients
As Dan explains, there is actually quite a bit of difference. In debt consolidation, you usually try to negotiate with your creditors to get them all to accept some form of repayment plan and to reduce the amount you owe or perhaps the interest you pay. But, you do usually repay your creditors a large portion of what you owe.
Conversely, in a Chapter 7 bankruptcy, it’s pretty much the opposite. Typically, in a Chapter 7, you end up paying your unsecured creditors nothing. Many of Dan’s clients have used a Chapter 7 bankruptcy to get a fresh start by getting completely out of debt, keep their assets and start a new financial life. For a more detailed explanation on assets, please see this article on Exempt Property or Assets.
If you are considering filing for bankruptcy in Maryland, contact The Law Offices of Daniel J. Guenther to find out the best option for you! Call 301-475-3106 today!