Most debt consolidation programs are voluntary for all parties. In a Chapter 13 bankruptcy, creditors are forced negotiate new payment terms. In some cases, a judge may force a creditor to accept new payment terms in what�s called a �cram down.�

In a Chapter 13, your payment plan is administered through a court-appointed Trustee who will have control of your finances. Also, when you file bankruptcy, you will have to make court appearances, go to creditor meetings, and meet with lawyers and judges. Most credit consolidation services eliminate these often-unpleasant steps.