Personal Debt Bankruptcy - Is Debt Settlement Always Better Than Bankruptcy?

Thousands of American credit card debtors often ask one question that is debt settlement always better than bankruptcy

? Because they think that in the case of bankruptcy, they do not any need to pay any additional penny to their creditors in the court in law, whereas in the case of the debt settlement, they have to still repay their financial obligations, so what is its benefit over bankruptcy?

Let me elaborate both of them so that you can better understand their advantages and disadvantages and can use them in your best interest forget ridding of your massive unsecured liabilities.

You must keep one thing in your mind that now, everyone is certainly eager to help you because they are aware about the facts that you are facing very devastating situation due to unfair practices of your creditors and the recent financial tsunami too. The government is working with all of its nerves and capabilities to entitle you with maximum relief in your huge liabilities so you must trust over the relief operations and relief programs.

If you are preparing to file for bankruptcy, then you have to pass through very tough credit counseling sessions, which may irritate you most because these sessions will evaluate your capability of debt repayment and if you pass these sessions, then still you have to prove yourself in court of law.

All of your assets whether moveable or immovable will be on stake and you will not be sure that which one or all will be given to your creditors for the recovery of their money. Once the court declares you bankrupt, then immediately your credit scoring will become negative and you will not be able to get credit from anyone anymore.

Whereas the debt settlement is very specialized and sophisticated way to enable you to get rid of your debt even it is very huge. In this program, you can get a reduction in your massive loans from your creditors and you may have to repay the remaining balance in a lump sum. The reduction will be based on your weak financial capability and negotiation with creditors. You may get more than 50 percent reduction in your debt. So, now you can compare by yourself that which method is the best.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.

Personal Debt Bankruptcy - Is Debt Settlement Always Better Than Bankruptcy?

By: adamcouch

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