Debt Settlement Versus Filing Bankruptcy - Which Is Better?

By Author: J.J. Yong
Total Articles: 963
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When your total debt has become unbearable, it is time for you to consider and to decide which financial solution you should take to overcome your problem. Normally, people in debt usually consider 2 options, i.e. debt settlement and declaring bankruptcy. Which is actually better?

To be frank, there is no definite answer. It depends on the types of debt as well as the debt amount. Let me share with you some facts.

Many people think that filing for bankruptcy is the fastest way to become debt free, if compared with debt settlement. However, this is not true. Not everyone who is in debt is qualified to declare bankruptcy. Furthermore, even if the person is qualified, it doesn't mean that he or she can be debt free immediately. In certain circumstances, he or she is still compulsory to pay back the debt, depending on the court judgment. Hence, if your debt amount is not big, you are advised to negotiate with your lenders to reduce your outstanding balances so that you can pay off partial of your debt. I believe that nobody prefers to file bankruptcy as it has negative effects on a person's credit score, career and ...
... life. If you choose to become a bankruptcy, your current employer and your future employer will get to know your financial situation. It will more or less affect your career development.

However, if your debt is overwhelming and you do not have sufficient fund on hand to go for settlement, declaring bankruptcy will be necessary. Here is an important reminder for you. As a responsible debtor, even if you have zero income, you still need to face your creditors. Don't run away from it. Don't try to take illegal action.

To sum up, when you are in the midst of handling your debt problems, you are advised to think twice about every step you are going to take so that you won't regret.
For more information about debt settlement solutions and debt settlement companies, visit DebtSettlementEssentials.com.