subject: Thinking About Filing Bankruptcy? - Why Debt Settlement Negotiation Is Better Than Bankruptcy [print this page] Thinking About Filing Bankruptcy? - Why Debt Settlement Negotiation Is Better Than Bankruptcy
Thinking about filing bankruptcy? Drop the thought instantly. All those who are thinking of filing bankruptcy should look for other methods and avoid it. Debt negotiations are one of the best ways of solving liability problems and it is the best alternative to filing insolvency. People owing more than $10,000 and willing to use insolvency should use debt settlement as they best fit he eligibility criteria for using settlement option. If you have no funds to repay your liabilities; have the determination of using insolvency and if you want quick relief the settlement is the best option for you. The advantages offered by settlement are far greater than the advantages insolvency has to offer and the disadvantages of settlement are lower than the cons of insolvency.
The advantages of settlement are:
You gain relief ethically by paying a small percentage of the accrued total. You get extra time for repayment and rate of interest charged on the remaining amount is low. Your credit ratings are easily repairable after using this method. You do not have to pay high service fee for your case and if the result is not up to the standard; then you do not pay at all. Your case is solved quickly; you do not have to work very hard to locate the best and legitimate service providers. The creditors even benefit as they recover the entire liability amount. The economy benefits as the lenders started lending and investments increase.
The disadvantages of insolvency are:
Your credit report is destroyed and remains the same way until insolvency is removed from your report. You face issues in obtaining jobs and loans. So you can't start a business easily and you cannot meet your financial necessities during emergency situations. You feel stressed out and you lose the ability to make correct decisions. The lender faces a huge loss and due to the fear of defaulting he stops lending. Economic growth is halted as investments reduce.
The advantages of insolvency are:
You solve your liability issues unethically; without paying a penny back to the lender and you gain relief.
The disadvantages of settlement:
Your credit ratings are injured but the injury is very easily repairable because you can easily get loans and start a new business and then pay off that loan. You can easily get a job and solve the issue of credit history.
The above stated pros and cons prove that settlement is the best method.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals.
