subject: Things to Consider Before Filing Bankruptcy - Have You Though About Debt Settlement? [print this page] One of the easiest ways that firstly comes into the mind, when you are in the problem of debt is the bankruptcy. The bankruptcy is a legal process in which the debtor is unable to pay of its debt amount and as a result bank captures its assets. But before filling the bankruptcy there are certain things you should remembered because of the fact that bankruptcy can't be the best option of the debt settlement:
1) Loss of credit scores: Just because you want to settle the debt amount the bankruptcy is not the best choice. You have to change your mindset in order to select the best choice. For the further ten years you will be suffer from the low credit scores and with this no other lender will pay the debt amount in full. The bankruptcy is the best option when you just want to stop the collection calls or letters.
2) Select the other way: Bankruptcy is not the only option that you can select for the debt settlement. But there are various other ways by which you can settle your credit card debt like debt consolidation, debt management and there are also some debt settlement companies that handle this situation more easily. All these options will help you in getting out from the debt amount for the longer period of time.
3) By having all the verification that whether you are eligible for the bankruptcy or not. And if you are qualified for the bankruptcy then you must read the rules and regulation of that for which you have selected.
4) It is not necessary that if you are filling the bankruptcy then you are eligible to pay all your debts. There are certain types of debt amount that can't be ridden even after you file for bankruptcy. So you must decide the option that suits as per your requirements.
So before coming to any decision you must calculate the present income and the debt amount and after comparing them you can come to any conclusion.
For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.
Things to Consider Before Filing Bankruptcy - Have You Though About Debt Settlement?
