Consolidating your loans under chapter 13
The one exception is where you make the risky move of re-financing your mortgage.
In the case of credit counseling companies, in most cases, the only debts dealt with at all are credit card debts, and then only if the credit card companies play ball. We're talking about credit card debts, medical bills, personal loans and other 'dischargeable' unsecured debts.
The other types of consolidation plans don't reduce the amount of the debt at all, and..best...
only lower your interest rates somewhat, and then only with respect to the unsecured creditors that participate.
Creditors are told what to do and how and when to do it.
Creditors that fail to comply with Bankruptcy law can be hauled in front of the Bankruptcy Court and punished.
The automatic stay is a Court Order issued immediately when you file bankruptcy.
Chapter 13 bankruptcies are a type of "debt consolidation" allowing you to reorganize your finances by consolidating your debts into one monthly payment.