subject: Debt Settlement Vs Filing For Bankruptcy - A Debt Relief Comparison [print this page] Debt Settlement Vs Filing For Bankruptcy - A Debt Relief Comparison
When you have debt people always encourage you to go for bankruptcy; however, bankruptcy might not be the right strategy in your situation. Unless you have an unimaginable amount of debt bankruptcy is definitely not the option for you. You might want to take a look at debt settlement since it was a method used by millions of Americans nowadays who wanted to clear their debt. If you are one of the many people who are in debt, why not choose for debt settlement?
Let's compare debt settlement and bankruptcy and see which option has more advantages for the average person with an average amount of debt.
Having your assets sold might not be a good experience; this is what might happen if you use bankruptcy. The court has to find a way to repay the debt somehow, so you might wake up one day with people at your door who want to take your belongings. This would never happen if you go for debt settlement because that option gives you the opportunity to pay your debt.
The credit score might not look good at all if you opt for bankruptcy. Do you know what a low score does to people? They cannot take another loan for many years, so if you ever need money you won't be eligible for a loan because you filed for bankruptcy in the past.
Another disadvantage that exists when talking about bankruptcy is the fact that bankruptcy might take a long time and while you wait for the case to be solved you will have to pay a lawyer; although debt settlement companies ask for a fee too, a lawyer's fee might be bigger on long term.
We should also take a look at the emotional implications of bankruptcy; because your name will appear in the paper and you might lose your credibility when it comes to your clients, bankruptcy might have more implications than most people think. Some people who filed for bankruptcy asked for therapy because bankruptcy is a very stressful process. You need to take this into consideration when choosing which method to use as a debt clearing method.
Make sure that you are careful when making the decision; only then you are sure if it is the right decision.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
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