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Settlement vs DMP vs Consolidation vs Bankruptcy Calculator
California Only
This calculator uses California-specific data. Results for other states will be inaccurate.
Compare costs, timelines, and eligibility for all debt resolution options (2025 data)
Legal Disclaimer: This calculator provides educational estimates only and is NOT legal or financial advice. Actual costs, timelines, eligibility, and outcomes vary significantly by individual circumstances. You MUST consult with a licensed California bankruptcy attorney or certified credit counselor before making any debt resolution decisions. Data current as of 2025.
Your Financial Situation
Step 1: What types of debt do you have? (Select all that apply)
Step 2: Enter your financial details
Step 2: Enter your financial details
Step 2: Enter your financial details
| Option | Total Cost | Monthly Cost | Time | Debt Reduction | Credit Impact | Available |
|---|---|---|---|---|---|---|
| Chapter 7 Bankruptcy Recommended | $1,878 | $470 | 4 months | $47,500 | -200 pts | ✓ |
| Chapter 13 Bankruptcy | $19,353 | $317 | 60 months | $35,000 | -150 pts | ✓ |
| Debt Settlement | $35,000 | $972 | 36 months | $15,000 | -100 pts | ✓ |
| Debt Management Plan (DMP) | $60,991 | $1,271 | 48 months | $0 | -30 pts | ✗ |
| Debt Consolidation Loan | $66,733 | $1,112 | 60 months | $0 | 0 pts | ✗ |
Debt Settlement
💰
Total Cost
$35,000
⏱️
Timeline
36 months
📉
Monthly
$972
⚠️
Credit Impact
-100 pts
Potential Savings: $15,000
Pros:
- Reduce total debt by 40-60%
- Avoid bankruptcy filing
- Faster than full repayment (3 years)
- Stop collection calls during negotiation
Cons:
- Severe credit score damage (-100 points)
- Forgiven debt may be taxable income
- Creditors may sue during process
- High fees (20% of enrolled debt)
- Not all creditors agree to settle
Debt Management Plan (DMP)
Not Available
💰
Total Cost
$60,991
⏱️
Timeline
48 months
📉
Monthly
$1,271
⚠️
Credit Impact
-30 pts
Pros:
- Lower interest rates (typically 8-10%)
- Single monthly payment
- Moderate credit impact only
- Creditor harassment stops
- No tax implications
Cons:
- Must pay full debt amount
- Takes 3-5 years to complete
- Monthly fees ($50 typically)
- Must close credit card accounts
- Not all debt types eligible
Debt Consolidation Loan
Not Available
💰
Total Cost
$66,733
⏱️
Timeline
60 months
📉
Monthly
$1,112
⚠️
Credit Impact
0 pts
Pros:
- Fixed payment schedule
- Minimal credit impact if paid on time
- May lower overall interest rate
- Simplifies multiple payments
- No bankruptcy on record
Cons:
- Requires good credit (620+ score)
- Still pay full debt plus interest
- Risk of accumulating more debt
- May need collateral for large amounts
- Origination fees may apply
Chapter 7 Bankruptcy
Recommended
💰
Total Cost
$1,878
⏱️
Timeline
4 months
📉
Monthly
$470
⚠️
Credit Impact
-200 pts
Potential Savings: $47,500
California-Specific Info:
CA Homestead: $361,076-$722,507 (county-based). Vehicle: $8,625. Filing fee may be waived if income below 150% poverty line.
CA Homestead: $361,076-$722,507 (county-based). Vehicle: $8,625. Filing fee may be waived if income below 150% poverty line.
Pros:
- Eliminates 95%+ of unsecured debt
- Quick process (3-6 months)
- Relatively low cost ($1,878 total)
- Immediate relief from creditors
- Fresh financial start
Cons:
- Severe credit damage (10 years on record)
- Public record - not confidential
- May lose non-exempt property
- Not all debts dischargeable
- Strict income eligibility requirements
Chapter 13 Bankruptcy
💰
Total Cost
$19,353
⏱️
Timeline
60 months
📉
Monthly
$317
⚠️
Credit Impact
-150 pts
Potential Savings: $35,000
California-Specific Info:
Must have regular income. All disposable income goes to plan. Attorney fees ($4000) included in payment plan.
Must have regular income. All disposable income goes to plan. Attorney fees ($4000) included in payment plan.
Pros:
- Keep all assets (home, car)
- Catch up on mortgage/car payments
- Stop foreclosure proceedings
- Reduce debt by ~70%
- Structured court-approved plan
Cons:
- Long commitment (3-5 years)
- Significant credit damage (7 years)
- Court supervision of finances
- Strict budget requirements
- Must have regular income
Important California Information (2025)
Chapter 7 Filing Fee: $338 (may be waived if income below 150% poverty line)
Chapter 13 Filing Fee: $313
Attorney Fees: Chapter 7: $1,000-$2,500 | Chapter 13: $3,000-$5,000
Credit Counseling: Required for bankruptcy. Costs $20-$50 per course (pre-filing and post-filing)
California Homestead Exemption: Ranges from $361,076 to $722,507 depending on county median home prices
Vehicle Exemption: $8,625 in equity protection
Data sources: California Bankruptcy Courts, American Bankruptcy Institute, US Trustee Program (2025). All calculations are estimates. Consult with professionals for personalized advice.
Updated on: November 15, 2016
