by Debt Settlement Expert on May 27, 2009
Debt Settlement or Bankruptcy: Which One Is Better?
Many people who are currently in debt are asking this question – you are not alone. While both bankruptcy and debt settlement are a way to free yourself from the burden of debt, the biggest problem with Bankruptcy is that it will seriously affect your credit for years to come, could result in you losing property, and in some cases, you may end up having to repay your debts anyway.
Important Things To Know About Bankruptcy:
- A bankruptcy can leave a terrible stain on your credit report for 7–10 years.
- In a Chapter 7 bankruptcy, you’ll be required to sell off all your property that isn’t protected by law.
- In a Chapter 13 bankruptcy, your debts won’t be wiped out. You’ll have a bankruptcy on your credit report and still have to set up a repayment plan to pay off all or part of your debts.
- With a bankruptcy on your credit report, you’ll find it difficult to get affordable interest rates when you try to buy a home or a car or apply for some other form of credit.
- A bankruptcy can stay on your official court records for more than 20 years — sometimes for the rest of your life — and can hurt your chances of being approved or even hired when you apply for a job or a loan or try to rent an apartment.
Which is better, bankruptcy or debt settlement? These are just a few of the things to consider – be sure to do your home work on both. Everyone has a different situation and it is best to speak with someone who is educated on both.
Get your free, Fair Debt Assessment today by calling one of our Fair Debt Assessment Experts.
by Debt Settlement Expert on May 21, 2009
Debt Settlement: How It Works
You may have seen an advertisement for something called “debt settlement” and are now wondering about what exactly it is and whether or not it is right for you.
Is it really possible for you to lower your debt by 40-60%?
Yes.
The of "debt settlement" is completely legal and can allow you to reduce the amount of credit card debt that you owe significantly. For many people who have tens of thousands of credit card debt, the legal process of debt settlement is better than credit counseling or debt consolidation and it gives them the debt relief they have been looking for.
Millions of dollars of debt is settled every week using the debt settlement process.
Debt Settlement Can Provide Debt Relief
In order for the debt settlement process to be effective where you can actually benefit from it, you must have a real need for debt relief. If you currently struggle to make even the minimum payments on your unsecured debt each month, that is a sign that the debt settlement process can help provide debt relief to you. If you are just fine and have no problems with your credit card or other unsecured debt, then you will not find a debt settlement program to be much help.
Debt Settlement: Avoid Bankruptcy
Debt settlement is known as a “bankruptcy alternative” because it allows you to get debt relief without having to file for bankruptcy. The debt settlement programs can help you get control over your finances without bankruptcy. Bankruptcy has gotten more difficult to file for and really should only be considered as a last resort.
