If you are with a debt management plan or consumer credit counseling is it viewed as a chap.13 on your credit?

Answer 1

Not necessarily. They are the same in that it shows you are having major financial difficulities. They are the same that the idea is to get out of debt - not to lower payment so you can get more.
For the payment plans, each can be different. The Ch 13 may or may not pay off all debts - especialy unsecured. They creditors don't have a choice. In credit management - there are good plans and bad plans. Some mess up your credit as much and sometimes more than a Ch 13. A good one will help you get out of debt and help you manage your money without wrecking your credit way much. Doesn't happen that often but I like to see the plans that actually help you pay off stuff rather than try forcing settlements down creditor's throats.
Sometimes a lot of decipline and making yourself make payments is best. It really depends on your financial troubles and why you are having troubles. Some people get in over their heads while some people just don't have the dicipline to write and mail checks when due. Most creditors are more receptive to the debtor's arrangements than a 3rd party interfering.

Answer 2

No, they used to until 1999. A study by Fair Isaac (inventor of FICO score) discovered that people on a debt management plan were no more likely to default than other debtors.

Most older bankers and mortgage brokers still don't know that the FICO scoring system was changed.

That being said, a lender may still be leery about extending credit to you if you are still on a debt management plan. That should not be a negative however, as you are not supposed to incur additional debt until you complete a debt management plan. It defeats the purpose to obtain more debt prior to finishing.

Answer 3

In a way.

Most credit counseling companies will not let you have any additional credit accounts.

I work in auto finance and depending on the lender some will give loans to people in credit counseling and some will not.

Being in credit counseling is not near as bad for your credit as chapter 13 bankruptcy.

Answer 4

you are better off with 13

If you go bankrupt, file your bankruptcy under Chapter 13. Chapter 13 permits an US resident to reorganize and restructure their finances. It allows you start afresh and get your finances back on the track. The bankruptcy court will supervise and authorize the entire process of overhauling your financial situation.

While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court.
http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-13-Bankrupt.html

Answer 5

just like filing a chapt 13. And filing bk is not very good advice.

Answer 6

No --- but most new lenders will view it as such. You are better off in a 13.

Answer 7

IT IS VIEWED ALMOST THE SAME. YOUR BEST BET IS TO FILE BK.