Can I Discharge Consolidated Debts?

Yes. If you are making payments to creditors under a debt consolidation plan, you still owe the debt until you have paid it in full. Thus, you can include your consolidated debts in your bankruptcy, and they will be discharged, assuming they are dischargeable on all levels.

Are you eligible for Chapter 13 Bankruptcy?

What is Chapter 13 Bankruptcy? Chapter 13 Bankruptcy is often referred to as a bankruptcy repayment plan. This type of bankruptcy enables wage earning individuals to propose a three to five year plan to repay their creditors. After the repayment plan commences, creditors are forbidden from pursuing other collection efforts against debtors. Chapter 13 is similar to a loan consolidation plan in that one payment is made to the bankruptcy trustee each month, and that payment is then distributed to the creditors. One advantage of Chapter 13 bankruptcy is that it allows individuals to restructure their secured debts over the …

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