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What happens to debt consolidation when you file bankruptcy?


adam999
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I would almost bet that these idiots would state you owe them money so list them as a creditor along with the other creditors you have (in fact, that will make it easy because the debt consolidation people have made the list for you) and they go away in the CH 7 (or become part of the CH 13 consolidation).

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Ignore the post above. Consult your bankruptcy attorney. List your DMP co in your BK. The payments to the DMP stop the moment you file. Your assets are not seized. You have exemptions in each state that will allow you to keep your assets up to the amount of the exemption. Each state has different exemption amounts. Again, your BK attorney will know the amounts allowed in your state.

Edited by Denita
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