Legal Question in Credit and Debt Law in California

Re: Credit Counseling

Not the same, but many of the credit counseling services (including the largest CCCS - which is operated and paid for through a consortium of credit card companies), do put a negative mark on your credit for amounts negotiated through them.

A bankruptcy is on your credit report for 10 years, and other negative information remains on your credit report for 7 years.

Re: Credit Counseling

Bankruptcy is much worse because they can report you for 10 years.

Credit counseling companies often arrange for you to pay over a longer period of time, but the creditors can still report you as late.

You may want to try to negotiate yourself with the creditors to see if there is a way you could restructure the obligation without them showing you as a slow pay.

In any case, paying people off, with an explanation of the problem, is always better than a BK. And avoid a chapter 13 at all costs.