In this video, Mr. Guenther explains the difference between debt consolidation and Chapter 7 Bankruptcy.
Daniel has practiced bankruptcy law in Southern Maryland for over 33 years. In this video, he explains the difference between debt consolidation and a Chapter 7 bankruptcy. This is a question often asked by his clients.
As Daniel 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.
Typically, in a Chapter 7, you end up paying your unsecured creditors nothing.
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.
