Sometimes people in difficult financial situation jump to conclusions and automatically rush to the conclusion that bankruptcy is the only option. In talking to a Salem bankruptcy attorney, he or she can help you explore other options. Most any Salem bankruptcy attorney would suggest that bankruptcy be a last repost in any situation. Your Salem bankruptcy attorney can help you do much more than simply process your personal bankruptcy claim. Depending on the specifics of your situation, there may be many options for you to consider. One popular option that is usually reserved as a last resort prior to turning to bankruptcy is a settlement option. A settlement is when the creditor agrees to consider a debt settled after accepting less than the full amount that is due on the account. This can be in the form of one lump sum payment or split up into a few smaller payments over a predetermined period of time. There are many advantages and disadvantages to settling a debt. The most obvious advantage is that you can satisfy your debt and will no longer owe that creditor. The most common negative affect is that it will reflect that you settled on your credit report. At the same time though, this can be viewed as a positive as well. Instead of simply saying this person could not pay back everything he or she owed, you could view it as that person attempting to make good on their financial obligations despite their circumstances. It could signify that you simply cannot adequately handle the amount of credit that was extended to you. Or it can represent the fact that you would do absolutely everything within your power to take care of any debt that you amassed. The circumstances around your settlement will tell the whole story.