Debt Settlement and Bankruptcy - How They Eliminate Debt in Different Ways
If you're in the position of having to weigh debt relief strategies to bring your financial picture back into focus, there are a few options open to you.
First off, it depends on your current state of debt.
If you're in control of your debt, but it's still an effort from paycheck to paycheck, you may not be so bad off that you have to declare bankruptcy.
You may be able to search out a debt settlement company to work out a solution for you, possibly for less than what you actually owe.
Here's the different ways bankruptcy and debt settlement differ in how they eliminate debt: *Debt relief from bankruptcy is typically a last ditch effort to survive.
It's for those who cannot possibly pay off their debts and they're drowning in a sea of persistent creditor phone calls and late notices.
Bankruptcy debt relief is desperation.
It's not caring if your credit score heals or about the black mark it puts on your account books.
Bankruptcy eliminates debt by employing the law to step in, demanding your creditors stop harassing you, and then takes you through a legal process to declare your inability to pay back what you owe.
Your future credit will have this declaration of bankruptcy on file for years.
*Debt settlement, on the other hand, is a logical approach to debt relief.
It's taking a bad situation and is an attempt to make good, to pay back what you owe in a reasonable time frame.
A good debt settlement company can negotiate with your creditors to accept less as long as you take on the responsibility to pay the debt off.
The debt settlement method of debt relief is not as drastic as bankruptcy and the consequences are not as lasting or damaging to your future credit.
Financial settlement can leave you in control of your financial life and let you come out of a negative situation with a positive result.
If you are over $10,000 in unsecured debt and you want to maintain the ability to work through what you owe without the need to file bankruptcy to get relief, a settlement may be what you're looking for.
First off, it depends on your current state of debt.
If you're in control of your debt, but it's still an effort from paycheck to paycheck, you may not be so bad off that you have to declare bankruptcy.
You may be able to search out a debt settlement company to work out a solution for you, possibly for less than what you actually owe.
Here's the different ways bankruptcy and debt settlement differ in how they eliminate debt: *Debt relief from bankruptcy is typically a last ditch effort to survive.
It's for those who cannot possibly pay off their debts and they're drowning in a sea of persistent creditor phone calls and late notices.
Bankruptcy debt relief is desperation.
It's not caring if your credit score heals or about the black mark it puts on your account books.
Bankruptcy eliminates debt by employing the law to step in, demanding your creditors stop harassing you, and then takes you through a legal process to declare your inability to pay back what you owe.
Your future credit will have this declaration of bankruptcy on file for years.
*Debt settlement, on the other hand, is a logical approach to debt relief.
It's taking a bad situation and is an attempt to make good, to pay back what you owe in a reasonable time frame.
A good debt settlement company can negotiate with your creditors to accept less as long as you take on the responsibility to pay the debt off.
The debt settlement method of debt relief is not as drastic as bankruptcy and the consequences are not as lasting or damaging to your future credit.
Financial settlement can leave you in control of your financial life and let you come out of a negative situation with a positive result.
If you are over $10,000 in unsecured debt and you want to maintain the ability to work through what you owe without the need to file bankruptcy to get relief, a settlement may be what you're looking for.