Trying to decide between Debt Settlement and Bankruptcy in Greenville South Carolina? Let me share a couple of thoughts with you. I tried Debt Settlement. I thought I could buy time and improve my situation, and eventually reach an agreement with my creditors. I figured this might take 5 7 years in the current economic environment, but it would have to be better for my credit eventually than Bankruptcy, Right? In most cases this is completely wrong.
If you are in this situation right now, you are hoping things will get better. What if it takes 5 years before things start to recover? Your credit is trashed now as it is. And contrary to what some may tell you, Potential Creditors in the future are going to look at your settlement just as harshly as a bankruptcy. Settlements are going to show up on your credit report. So do you go for 5-8 years of settling your debt, only to start your credit repair clock when that is completely finished? Then spend another 3-4 years getting your credit back into shape? Or is it better to reset your clock now, when things are rough anyway, and start rebuilding your life from this moment on? Can you handle harassment and calls from creditors to your family and friends and at your workplace for YEARS going through debt settlement every time the debt is sold off to another company? This is not supposed to happen, but I can tell you it happened to me, my wife, our families and our friends. It was terrible.
You also need to check with the person who handles your taxes for a debt settlement case. The IRS has these companies report the debt that has been forgiven hahahahahaha to them. Depending on your situation this can be considered taxable income, so please be careful.
Even if you are forced into a Chapter 13 Bankruptcy in Greenville South Carolina at least you know when it will be over. And the repair and new life starts right away. After 7 years a Chapter 13 can be removed from your credit file.
Debt eliminated in bankruptcy is not Taxable.
You can always pay your creditors after a Chapter 7 Bankruptcy if you so choose, but it puts you back in control of your life, and gets the creditors off your back, so you can become a sane and productive person again. A good bankruptcy lawyer can help you with these tough decisions. Dont be afraid to go and get a consultation with one. What can it hurt? I hope this helps!! Just my point of view. Good Luck and God Bless!!
