Should You File Chapter 7 Bankruptcy or Use Debt Settlement to Deal with Too Much Credit?

Being deep in debt can be depressing especially if you don't have the means to pay for your accounts

. Since you may already have known that things can get worse overtime especially if you are dealing with sky high interest rates, you might have thought about filing for Chapter 7 bankruptcy so that you can start from scratch again. Some people have made the same decision without even knowing the scope of this debt repair option. Like them, you may be better off with debt settlement instead because of its benefits.

Chapter 7 is a type of bankruptcy where you would be asked by court to liquidate assets. The money from selling your non-exempt properties would be used by a designated overseer to pay your creditors before they can wipe off any debt you owe them. Depending on which state you live in, you can be forced to sell certain properties that are important to you. Debt settlement is far more convenient and you have total control because if you want to pay off your credit and you don't have the funds, simply choose the specific assets you want to liquidate.

Though you are not going to be fired or be discriminated when you are going to file for Chapter 7, you will have a hard time searching for a job if the employers would look at your credit score. There are some companies that would rather hire people with a good credit report. This practice is frown upon by some groups of people, but this doesn't mean it's not being done by your future boss. Debt settlement can help you take away any negative marks as long as you are going to carry out the right negotiation techniques. Your credit score may not be very high, but it's better than someone who has bankruptcy in their records.

One of the main problems in filing for Chapter 7 is the duration. Aside from staying in your records for 10 years, you would also not be allowed to file again for another 8 years. This would mean that you should manage your finances carefully. This may be challenging since declaring bankruptcy will leave you with only a few assets. If you are going to settle on the other hand, you won't have to be burdened by these time restrictions.

Should You File Chapter 7 Bankruptcy or Use Debt Settlement to Deal with Too Much Credit?

By: Herschel Bentley

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