Debt settlement or bankruptcy: which is the better alternative?
June 14th, 2010
If you have found that you can no longer keep up with payments on your credit cards and are searching for debt relief options, it is important that you consider the advantages and disadvantages of choosing either Debt settlement or bankruptcy. Debt Settlement as opposed to bankruptcy.
In most cases, debt Settlement is the better solution as opposed to bankruptcy. Debt settlement has become a more desired solution to eliminating debt because of the advantages of reducing the existing debt by 50% or more by negotiating with creditors and because of the ability of making an affordable payment plan to pay off the debt quickly.
The two most common filings of bankruptcy are chapters 7 and 13. In either situation, the borrowers are required to get credit counseling and may still be responsible for paying back the debt. in either case the consumers credit scores are damaged severely and the bad mark of a bankruptcy remains on their credit reports for a minimum of 10 years.Altghough debt settlement has its drawbacks because it will also temporarily hurt your credit score, (it can be fixed quicker however) we feel that debt settlement is still a better easier quicker solution than bankruptcy.
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