Debt Advice?

Debt Advice?

My boyfriend has bad debt, and cannot deal with the collection agencys abuse so we contacted American Credit Foundation http://www.debtguru.com/ which is a non profit credit counciling foundation that has agreed to make a payment plan so he can pay back the 2 creditors he owed. I figured this would give him a chance to build his credit back up. Will this hurt him?
I ask because we received a call from Omni Credit Services today and they said that is equivalent to bankcrupty. His dad is telling him that if he claims bankruptcy he would still be able to purchase a house within a few years. Whos right, whats his best options.

The Answer : Lots of poor, uneducated answers here!For starters, working with credit counseling is NOT the same as a consolidation loan. Credit counseling will hurt your credit, but not nearly as much as a bankruptcy.True, you could file for bankruptcy and qualify for a house in two years.....but that assumes that you are filing for a Chapter 7.

If you are a wage earner making more the the state allowance, you will not qualify for a Chapter 7, but instead be placed into a 13. You will be put on a 3-5 year payment plan to pay off a portion of the debts, and during that time you will not be allowed to incur further debts (like a mortgage).

I don't know your boyfriends situation...but stick with your payment plan for now. The advice about dishonest credit counselors is correct.