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Bankruptcy is a serious decision that comes with serious consequences. It should be considered only as a last resort, based on the advise of a qualified attorney. Choosing bankruptcy over debt settlement will depend on your individual situation and circumstances. There is no single best answer to the question of bankruptcy or debt settlement – which is better? There are comparisons that can be drawn that can help you determine the right choice for your situation: Bankruptcy laws changed in 2005 making it more difficult to discharge unsecured debt. Since 2005, people who don’t qualify for a chapter 7 bankruptcy can only file a chapter 13 repayment plan. Chapter 13 repayment plans can last from 3 – 5 years and the payments are usually deducted from your paycheck. Here are some things to think about when considering bankruptcy to debt settlement: Bankruptcy: Matter of Public Record Debt Settlement: Is private and not a matter of public record Bankruptcy: Impacts credit score for up to 15 years. Normal is 10 years Debt Settlement: typically only impacts credit score while in program. Inaccuracies on the credit report can be cleaned up after graduating from the program. If you are still considering bankruptcy, please contact us. We can provide information to for local bankruptcy attorneys in your area who will give you a free and no obligation consultation. Here is an excellent resource regarding bankruptcy. |
