Some folks might be reading this wondering how Chapter 13 bankruptcy differs from debt consolidation.nnFirstly, debt consolidation is a good option for some people. Essentially, what you are doing with debt consolidation is paying off all your debts by taking out a new loan. In other words, someone has to be willing to buy up your debt and then become your primary creditor. That is not without risk.nnChapter 13 bankruptcy, however, has zero risk to any new creditor. Your debts are essentially reorganized in a manner that makes them manageable. You don’t pay interest on Chapter 13 debts. That, however, comes with a consequence. The Chapter 13 bankruptcy should be deleted from your credit report seven years from the filing date while the Chapter 7 is on your credit report for ten years. But you can rebuild your credit within the first couple of years after your discharge because creditors do not make money unless they lend to debtors.nnThe major benefit of debt consolidation is that all of your debt is owned by a single creditor. They offer you a fixed interest rate, hopefully, a lower interest rate, and you only need to make one payment. On top of that, as you make the payments, you are actually improving your credit. That is not the case with Chapter 13 bankruptcy.nnA bankruptcy attorney can help you make the right choice as you try to manage your debt. It’s an option that has saved some individuals from filing for bankruptcy.