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Is a debt management program the same as filing for bankruptcy?

April 26, 2017Bankruptcy debt management filing program

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Is a debt management program the same as filing for bankruptcy?

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The answer to this question is no. It is not the same as filing for bankruptcy. The DMP is plan for debt reduction. It is a form of debt relief. It is a voluntary agreement between you and your creditors. It is a plan for consistent payments in exchange for the reduction and/or elimination of interest and fees. Bankruptcy on the other hand is a proceeding that takes place in a federal court. The assets of the individual are sold and the individual is relieved of further liability to their creditors. Bankruptcy stays on your credit report for at least 7 years.