From our experience at O’Bryan Law Offices, InCharge Debt Solutions is a legitimate nonprofit credit counseling organization. Legitimacy alone, however, does not mean it is the right solution for every person carrying debt in Kentucky or Indiana.
This review explains what InCharge offers, where its program falls short, and when a legal alternative may protect you better.
Reach out to our Louisville, Kentucky debt relief lawyer team to find out whether a DMP or a legal remedy is the right fit for your situation.
What Is InCharge Debt Solutions?
InCharge Debt Solutions is a 501(c)(3) nonprofit credit counseling agency founded in 1997 and headquartered in Orlando, Florida. It is accredited by the National Foundation for Credit Counseling (NFCC) and the Council on Accreditation (COA), and holds an A+ rating from the Better Business Bureau.
The organization’s primary service is a debt management plan (DMP) – a structured repayment program for unsecured debts like credit cards and personal loans. InCharge states it has helped over one million people repay more than $3.4 billion in debt since it was founded.
💡 Additional reading: Are debt relief programs legit
How Does InCharge Debt Solutions Work?
InCharge’s debt management plan consolidates your unsecured debt payments into a single monthly amount, then distributes those funds to your creditors on your behalf. The process starts with a free credit counseling session lasting roughly 25 to 40 minutes, conducted by phone or online.
If a DMP is appropriate for your situation, InCharge contacts your creditors and negotiates reduced interest rates – typically targeting around 8.4%, compared to the 20% to 30% most cardholders are paying at enrollment. You make one payment each month to InCharge, and InCharge handles distribution.
Most clients who stay with the program become debt-free on their enrolled accounts within three to five years.
Our debt relief lawyer in Frankfort can review your full debt picture and advise whether a DMP is the most effective route forward.
InCharge DMP Fees: What You Will Actually Pay
InCharge charges two fees to enroll in its debt management plan: a one-time setup fee and an ongoing monthly service fee. Both are regulated by state law and vary depending on where you live.
Fee Type | Average Amount | Maximum |
One-time setup fee | $52 | $99 |
Monthly service fee | $34 | Varies by state |
Initial credit counseling session | Free | – |
HomeTrek homebuyer course | $99 | – |
These fees are meaningfully lower than what many for-profit debt relief companies charge. The fees are in addition to your monthly debt payments and do not reduce the principal you owe.
Over a five-year program, monthly fees alone can total more than $2,000.
What Debts Does InCharge Cover?
InCharge’s debt management plan only covers unsecured debts – primarily credit cards and personal loans. It does not cover mortgages, auto loans, student loans, IRS tax debts, or any other secured obligation.
If the bulk of what you owe includes a mortgage you are behind on, a car loan at risk of repossession, or back taxes, a DMP will not resolve those problems. Those debts will continue to accrue interest and penalties regardless of whether you are enrolled in InCharge’s program.
Unsecured debts the DMP can address include:
- Credit card balances: All enrolled credit card accounts must be closed upon enrollment.
- Personal loans: Eligible if unsecured and held by a participating creditor.
- Medical bills: Eligible in some cases, depending on the provider.
- Certain retail accounts: Store cards may be included if the issuer participates.
If you are carrying a mix of secured and unsecured debt, our team can help you map out which obligations a DMP would and would not touch – and whether a more comprehensive legal remedy makes better sense for your situation.
Will InCharge Hurt Your Credit Score?
Enrolling in an InCharge DMP will likely cause a temporary dip in your credit score, primarily because you are required to close your credit card accounts when you join. Closing accounts reduces your available credit, which raises your credit utilization ratio – a significant factor in your score.
InCharge does not itself report DMP participation to the credit bureaus, though individual creditors may note it on your file. The organization states that after roughly six to eight months of consistent, on-time payments, most clients begin to see their scores improve.
A DMP is not the same as debt settlement or bankruptcy. Unlike debt settlement, a DMP keeps you in good standing with creditors and requires you to repay the full balance owed at a lower interest rate.
Unlike Chapter 7 bankruptcy, a DMP does not appear on your credit report as a bankruptcy filing.
If you are unsure how different debt relief options could affect your credit, contact our team for a plain-language explanation of your options.
The Risks of a Debt Management Plan
A DMP through InCharge carries real tradeoffs that are easy to overlook when you are focused on getting relief.
The most serious risk is program cancellation. If you miss a single payment, InCharge’s DMP may be terminated – and with it, the negotiated interest rate reductions your creditors agreed to.
You would then revert to your original rates and terms.
Other risks worth weighing carefully:
- Interest keeps accruing until creditors formally accept the DMP terms, which can take one to two billing cycles after enrollment.
- You cannot use credit cards for the three to five years the program runs, which may create practical hardship.
- Not all creditors will participate, meaning some debts may remain outside the plan at their original rates.
- A DMP cannot stop a lawsuit. If a creditor has already filed suit or obtained a judgment against you, enrolling in a DMP does not halt that legal process.
- Forgiven debt may be taxable. In some debt settlement arrangements, any forgiven balance is treated as taxable income by the IRS – though this applies more to settlement than a standard DMP.
Our team regularly advises Kentucky and Indiana families who have already encountered one or more of these situations. If any of these risks apply to you, we can help you evaluate whether a DMP is still viable or whether a stronger form of legal protection is the better path forward.
When InCharge Works - and When It Doesn't
InCharge’s DMP is well-suited for a specific situation: someone with primarily credit card debt, steady income to support a fixed monthly payment, and the discipline to maintain that payment for up to five years without taking on new debt.
It is not a fit when:
- You have secured debts (mortgage, car loan) that are also in distress.
- Your income is too unstable to commit to a fixed payment for three to five years.
- Creditors have already escalated to lawsuits, garnishments, or bank levies.
- The total debt load is unmanageable even at a reduced interest rate.
- You need relief faster than a multi-year repayment plan provides.
When the situation has moved beyond what a DMP can address, our firm steps in with legal tools that a nonprofit credit counseling agency simply cannot provide – including the immediate protection of the federal automatic stay.
💡 Additional reading: Is Pacific Debt Relief legit
InCharge vs. Bankruptcy: An Honest Comparison
This is a comparison that no debt relief company review will give you, because those companies have no reason to recommend bankruptcy over their own services. Our only obligation is to the person sitting across from us.
InCharge DMP | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | |
Covers secured debt? | No | Yes (some discharged; others reaffirmed) | Yes (can restructure mortgage arrears, car loans) |
Stops creditor lawsuits? | No | Yes – automatic stay | Yes – automatic stay |
Stops wage garnishment? | No | Yes – immediately | Yes – immediately |
Time to debt relief | 3-5 years | 3-6 months to discharge | 3-5 years (structured plan) |
Credit report impact | Not reported as bankruptcy | Up to 10 years | Up to 7 years |
Requires closing credit cards? | Yes | Yes, typically | Yes, typically |
Covers tax debt? | No | Some older tax debts, subject to conditions | Can repay through plan |
Legal protection from creditors? | None | Yes – federal automatic stay | Yes – federal automatic stay |
The automatic stay under 11 U.S.C. § 362 is the feature no DMP can replicate. The moment a bankruptcy petition is filed under federal law, virtually all collection activity must stop – phone calls, lawsuits, garnishments, foreclosures, and repossessions.
That protection is immediate and legally enforceable.
Federal bankruptcy petitions in Kentucky are filed in either the Western or Eastern District – both of which our firm serves. We can help you determine which chapter fits your circumstances and guide you through the process from the first conversation to discharge.
Ready to explore every option with our experienced team? Schedule your Fresh Start Planning Session today.
What Kentucky Residents Should Know Before Enrolling
Kentucky law provides certain protections for debtors that affect how debt collection and bankruptcy interact – protections that a DMP cannot activate on your behalf.
Under KRS 427.010, Kentucky’s wage garnishment statute protects a portion of your disposable earnings from creditor collection. These statutory protections apply in bankruptcy proceedings but do not apply simply because you enrolled in a DMP.
Kentucky debtors who file for bankruptcy also benefit from the state’s exemption framework. Under Kentucky law, homeowners can exempt up to $31,575 of equity in their primary residence, up to $5,000 for a vehicle, and additional amounts for retirement accounts, household items, and occupational tools – all while discharging unsecured debt entirely in a Chapter 7 case.
The University of Kentucky J. David Rosenberg College of Law’s legal aid resources and the Kentucky Bar Association’s Lawyer Referral Service are both available to help residents identify when professional legal guidance is appropriate.
Our team helps Kentucky and Indiana families work through exactly these questions – so that the path you take is the one that actually fits your financial picture, not just the first option you came across.
Struggling With Debt in Kentucky? Let's Look at Every Option Together.
The right debt relief path depends on your full financial picture – not just your credit card balances. Our experienced team at O’Bryan Law Offices reviews each situation individually and explains your legal options without pressure.
Whether bankruptcy is the right answer or something else entirely, we will tell you plainly.
Attorney Julie O’Bryan has been board-certified in consumer bankruptcy by the American Board of Certification since 2003 – one of only three board-certified consumer bankruptcy attorneys in Louisville and one of only six in Kentucky. Our team has guided more than 30,000 Kentucky and Indiana families through debt relief since 1994, working on a flat-fee basis agreed to in advance, with no surprises.
Call us at (502) 339-0222 or visit our contact page to schedule your Fresh Start Planning Session today.
FAQs
Can Kentucky or Indiana residents enroll in an InCharge DMP without visiting an office?
Yes. InCharge Debt Solutions operates nationwide and serves Kentucky and Indiana residents entirely by phone or online. In-person counseling is only available at its Florida headquarters. The free 25-to-40-minute credit counseling session, DMP enrollment, and ongoing account management are all accessible remotely, with no requirement to visit a physical location.
If I lose my job while on an InCharge DMP, what happens to my plan?
If your income drops and you miss a payment, InCharge’s DMP may be canceled and all negotiated interest rate reductions reversed. Your accounts immediately return to their original terms. Contact InCharge as soon as your situation changes, as adjustments may be possible before a missed payment triggers cancellation.
Does signing up for an InCharge DMP stop creditors from calling or suing me in Kentucky?
No. An InCharge DMP carries no legal authority to stop creditor calls, lawsuits, or wage garnishments in Kentucky. Creditors are not required to halt collection activity on enrollment. A federal bankruptcy filing triggers the automatic stay under 11 U.S.C. § 362, immediately prohibiting all collection contact and legal proceedings.
I am behind on my mortgage in Kentucky. Will an InCharge DMP protect my home?
No. An InCharge DMP covers only unsecured debts and cannot pause Kentucky foreclosure proceedings, which can reach sheriff’s sale in approximately five to six months. A Chapter 13 bankruptcy filing triggers the automatic stay immediately, halting foreclosure and allowing mortgage arrears to be repaid through a court-supervised plan.
If I am already in an InCharge DMP and file for bankruptcy in Kentucky, what happens?
Filing for bankruptcy while enrolled in an InCharge DMP terminates the plan and moves your enrolled accounts into your bankruptcy estate. In a Chapter 7 case, eligible unsecured debts may be fully discharged; in Chapter 13, they are restructured under the U.S. Bankruptcy Court for Kentucky’s Western or Eastern District.
