Explore Your Options Beyond Debt Management
InCharge is commited to finding the right debt solution for you
Debt Settlement
Speak with our debt settlement partner to determine whether settling your debt is the right path for you.
Bankruptcy
Connect with our bankruptcy partner to explore your options for filing bankruptcy.
What Happens After Leaving a DMP?
When a Debt Management Plan ends, your interest rates will return to their original levels, and some creditors may prevent you from joining another debt management program in the future.
The good news is that you’re not stuck. Two effective debt relief options can still help you move forward. Every financial journey is unique, and the most important thing is finding the path that works for your needs.
Your Options Moving Forward
While our debt management program may not have been right for you, there are other solutions that may help you move forward.
Two of the most common next steps are debt settlement and bankruptcy. The right choice depends on your unique financial situation and long-term goals. Take some time to explore these options so you can make the best decision for your path forward.
Debt Settlement
Creditors must agree to accept a lump-sum payment that is less than what is owed on your credit cards. They are not obligated to do so. It usually takes 2-3 years to save enough money to make a lump-sum offer.
Why Choose Debt Settlement
- Pay less than what you owe
- One affordable monthly payment
- Become debt free in 2-4 years
Things to Consider
Debt settlement can be a useful tool for getting out from under overwhelming debt, but it does come with some trade-offs. Any amount of debt that gets forgiven is considered taxable income by the IRS, which means you may owe taxes on the savings. It’s also important to know that creditors aren’t required to accept a settlement offer, though many will if they believe it’s the best way to recover some of what’s owed.
Settlement companies do charge for their services (typically around 20%–25% of the final settled amount). The process will be reflected on your credit report for up to seven years. That can bring your credit score down in the short term. Still, for many people, the relief of reducing debt outweighs the drawbacks, especially if other options haven’t worked.
Find out if debt settlement is right for your situation
Bankruptcy
If your debt overwhelms your income, it may be time to consider a fresh start through bankruptcy. A successful bankruptcy filing will eliminate credit card debt, but also leaves a 7–10-year negative mark on your credit report.
Why Choose Bankruptcy
- Wipe out unsecured debt like credit cards, personal loans and medical bills
- Put an end to creditor calls, lawsuits, and wage garnishments
- Get a fresh start under the protection of the court
Types of Bankruptcy
- Chapter 7: Discharges unsecured debt in as little as 3–6 months
- Chapter 13: Sets up a structured repayment plan lasting 3–5 years
Things to Consider
Bankruptcy will affect your credit and won’t erase every type of debt. But for many people, it’s the quickest and most reliable path to a financial reset and a chance to move forward.
Explore your bankruptcy options
Side-by-Side Comparison
| Debt Settlement | Bankruptcy | |
|---|---|---|
| Goal | Reduce what you owe | Eliminate or restructure debt |
| Timeline | 24–48 months | 3–6 months (Ch. 7) / 3–5 years (Ch. 13) |
| Credit Impact | Moderate, short-term | Significant, long-term |
| Best For | People with income but too much debt | People with little/no ability to repay |