There is hardly any comparison between debt settlement and bankruptcy as they are poles apart. One is a debt relief option while the other is a debt evading process. Debt settlement is always on a higher pedestal than bankruptcy when the latter literally pulls you down to ground zero.
Though relief solutions have given creditworthiness to many, clear advice is essential when you want to run away from debts or rather reduce it for a healthy life. Getting out of debts need tactics which should be built up if not born with. Your credit cards can make way to consolidate debts and save you from bad debts.
When you keep debt minimization and bankruptcy together, you conclude that you need special services of an attorney while filing a bankruptcy besides paying the attorney a handsome amount. Though unfair but the rule stands apart which you can compare with debt reduction that does not need any external assistance whatsoever.
With a minimum know-how of the basics you can negotiate with the lenders and avoid any professional advice because at the end of it all it depends on the attitude of your lenders. If you can convince him to an amicable situation, your job is half done.
When you compare the working of both relief options, you cannot really be sure of any help from bankruptcy. The court decides you to go in for chapter 13 or Chapter 11 bankruptcy leaving you with no alternative but to abide the court ruling. For your information, it is derogatory as well on your credit report.
Bankruptcy never teaches minding your finances and managing them, but debt consolidation not only teaches you to manage finances, but also pardons you giving a 50% discount on your debts leaving the next 50 for you to repay in the coming months. This explains it all that debts should be settled on time for a secured financial future.
Hence the debt settlement should always be the first option while settling debts while keeping bankruptcy as the last option.
Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That's why it's so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies.