A reliable alternative exists if you can settle the accounts quickly
Finding out that Chapter 13 is your only bankruptcy option can have a silver lining. Many people in this position have income or assets that can fund a settlement in months instead of years — and that result can be much better than a 3–5 year Chapter 13 repayment plan. See the full comparison of Chapter 13, Chapter 7, and settlement.
Scroll the chart left to right on mobile.
| Chapter 13 | The Strauss Method | |
|---|---|---|
| Time to complete | Generally 3–5 years | About 6 months. Some finish sooner. Some take longer |
| Time to recover credit | The filing stays on the credit report for up to 7 years. New credit can start sooner, often within 2 years of discharge. Credit is generally recovered within 5 years for a 3-year Chapter 13 plan and 7 years for a 5-year Chapter 13 plan. | Generally within 2 years after the final settlement payment. If you can fully settle all of your enrolled accounts in 6 months, you will generally acquire new unsecured credit within 2 1/2 years of enrolling. |
| Typical fee | With attorney representation, about $4,000–$5,500 to file, plus trustee fees. | 20% of what we save you. See the fee comparison |
| Typical success rate | About 40% receive a Chapter 13 discharge. Discharge means the plan was successfully completed. Roughly 10% of Chapter 13 cases convert to Chapter 7. The remaining cases are dismissed and lose bankruptcy protection. | Jared only enrolls accounts in the simultaneous service when the funds are available to settle them. Results vary by creditor, balance, and whether those funds stay available. The goal is to settle the accounts close together so you know sooner whether the funds are enough to solve the problem. |
Long-term settlement (generally 24–48 months) puts you in an adversarial position with your creditors for years, delays recovery, and dramatically raises the chances of lawsuits. A 2020 study commissioned by the debt-settlement industry found that 22% of enrolled consumers settled all of their accounts within 48 months. See the full pros and cons.
If Chapter 13 is on the table, there is a decent chance you have something you can use to settle now. Settling in months instead of years reduces lawsuit risk and shortens recovery. See how the Strauss Method works.
Do not assume you have no way to settle just because an attorney said Chapter 13 is your only bankruptcy option. A free consultation is how we break down whether an asset or other resource makes simultaneous settlement possible.
If you cannot settle right away, do not start a 24–48 month settlement program. Those accounts stay unpaid while you save, and unpaid charged-off accounts are the ones that can reach an attorney. See how the collection cycle works.
A payment plan is the other Chapter 13 alternative. The goal is the smallest payment the collector will accept on the charged-off accounts, while you accumulate the resources to settle them together later. It dramatically reduces the chance the account is placed with an attorney, which is when a settlement usually gets a lot more expensive. It does not satisfy the debt until you settle it. Details are on the services page or in the FAQ.
I am writing this letter to express my most sincere appreciation for the services you recently provided me regarding the settlement of my credit card accounts.
As you are well aware, prior to meeting you, I couldn't meet the minimum payments on each of my nine credit accounts, and my creditors were relentlessly pursuing me via telephone, mail, and by filing civil complaints against me in both District and County court. I was emotionally and financially devastated, and felt bankruptcy was my only option.
You lifted the world off my shoulders by doing what seemed impossible, negotiating a reasonable settlement simultaneously with each of my nine creditors.
As you know, my financial avalanche started when I lost over $60,000 by falling victim to an investment fraud scheme, with no hope of recovering any of my losses. After about a year and a half, my $60,000 debt load had mushroomed to over $93,000 dollars, and I began seeking bankruptcy advice from two different attorneys.
Both attorneys advised me that bankruptcy was the best option and that settling with my creditors would be extremely difficult due to the large number of creditors and problems with getting them all to simultaneously agree on a settlement.
My financial destiny changed that day. The settlement you obtained for me allowed me to resolve my debt issues for approximately $30,000 — less than one-third of the amount due — and avoid bankruptcy.
— Richard
This testimonial is an example of past results and is not a guarantee of future settlement amounts.
The idea is to create a way to pay when a Chapter 13 would otherwise feel like the only door left. Chapter 13 can still be the right tool if you are saving a house. If the problem is unsecured debt, look at settling quickly — or using a payment plan to buy time and settle simultaneously later. Don’t default to a 3–5 year Chapter 13 just because Chapter 7 is off the table. See when Chapter 7 or Chapter 13 still makes sense.
No. Inability to file Chapter 7 often means you have income or assets that can fund a settlement. If you can quickly settle the unsecured accounts, a 3–5 year Chapter 13 may not be the better deal. If you cannot settle now but expect to be able to within the next 18 months, our Payment Plan service is worth looking at. See how our Simultaneous Settlement and Payment Plan services work.
When you are saving a house or another secured asset that a settlement will not protect. Also when you can't fund settlements quickly or when a payment plan approach still won't lead you to settling the accounts in a reasonable amount of time.
A Chapter 13 stays on the credit report for 7 years from filing. New credit can start sooner. A settlement finished in months usually starts that clock years earlier, about two years after the last settlement payment. See the full recovery timeline.
Have Jared look over your accounts with you, or read the free 4-part series first.