With a Debt Management Plan, you work with credit card companies to lower your APRs and eliminate finance fees. In doing so, the goal is to eliminate credit card debt faster than you would have been able to by paying more towards principal and less towards interest.
With Bankruptcy, whether it is a Chapter 7or Chapter 13, you are essentially liquidating or reorganizing assets in order to pay off some debts and absolve yourself of any other possible debts. Since 2005 federal bankruptcy guidelines have changed significantly.
Debt relief programs are a great option for anyone looking to save money on their principal without any long term repercussions. Although, this debt relief option isn't advised for everyone, it is definitely beneficial for struggling consumers.