In order for you to understand why debt negotiation beats bankruptcy in 2010 you will have to know a bit about both of them. This article will focus on the similarities and particularities about both of these two options used to clear debt.
The first option is called debt negotiation due the fact that is simply based on talking. You hire a debt settlement company to do the talking for you and you just have to give your approval if the amount reduced is of your liking. You can relax during the process because the debt settlement company will take care of every aspect, all you have to do is make sure you can reach the remaining amount in two or three years. You don't even have to worry about interest in these 3 years, or about penalties; you don't even have to worry about government taxes because it is supported by the government and it grants debt settlement tax relief. After the process is complete and you are free of debt, your credit score will increase so that you can take another loan if you need the money.
A short presentation about bankruptcy will show why debt negotiation is better.
It is true that usually bankruptcy takes a year to complete, which is shorter than debt negotiation, but there have been cases in which bankruptcy was declared after eight years of court hearings. And it is not all about the time you spend clearing your debt, it is also about how you do it. With bankruptcy you will be stressed and you will have to run around town to get all the needed paperwork and then go and present them in court, not to mention that you can't go to court without legal representation, so you will have to hire a bankruptcy lawyer which can set you back financially quite a bit. After you declare yourself bankrupt, your credit score will be crashed and no creditor will grant you a loan due to the high risk you represent for the company.
You can see that debt negotiation has every aspect in order and can help you clear debt in a relaxed and ethical way.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.