What is Better, Bankruptcy Or Debt Settlement?

what is debt settlement
by dctim1

What is Better, Bankruptcy Or Debt Settlement?

When you are overwhelmed with debt, you will probably weigh your options to deal with the situation very carefully. This is because living under crushing debt is certainly not the scenario you will want to be in and unless you are able to get a handle on your finances, you will never be in control of your life. Now, would you prefer to be in control of your destiny or would you rather have your creditors controlling your life? Clearly, being in control of your own life would be a much better situation to be in. Thankfully, there are options available to those looking to get out of debt. The two most common are bankruptcy and debt settlement. This then raises an important question: which method is the better one to engage in to get out of debt?

The word “better” will depend upon the situation a person may be in. However, in some instances, bankruptcy may not be the best option. This is because bankruptcy is a very complex legal issue. You simply do not announce you are bankrupt. You must file for bankruptcy with the court and the court will make many determinations as to how and when you pay your debtors. And, once you have filed for bankruptcy, this will stay on your credit rating for a ten full years. This will make securing future lending extremely difficult. This is why so many people will look towards debt settlement programs. They are less involved and much easier to deal with.

When you make a debt settlement offer, your credit rating will be affected. However, over time, you can improve your credit rating simply by getting a better handle on your finances. There are numerous ways to repair credit and they can all be performed even after a settlement program has been initiated.

As such, settlement options may be a better option for many.

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