Is Credit Counseling considered to be bankruptcy?

A debt management program is not bankruptcy. It is considered an effective alternative to bankruptcy. Debt management programs are similar to Chapter 13 bankruptcy, only, in that they are a repayment plan. When a consumer files bankruptcy, creditors are often forced to discharge debt and the consumer is no longer held legally liable for the debt. If a client files for chapter 13, the creditors are forced to accept the repayment terms that are established. They are also forced to accept that the debtor can repay the debt at a fraction of the dollar amount owed. A debt management program is a repayment plan that is mutually agreed upon by the creditors and the consumer. As opposed to reducing the amount of debt that is owed by the consumer, the creditors make adjustments in interest rates and penalty fees that enable the consumer to repay the debt at an accelerated pace. Debt management is a repayment program that is mutually agreed upon by the creditor and debtor. The program will enable the creditor to recoup all of the funds that were loaned to the debtor. Debt managment programs are not forced upon the creditor like bankruptcy and the client still maintains legal liability for repayment of the debt, which limits the effect that it will have on the consumer's credit.