Sunday, March 1, 2009

Bankruptcy Vs Debt settlement ….choice is yours.

There is always a huge debate between Bankruptcy & Debt Settlement. We are not able to decide that which way we need to follow & may be sometimes we will make some mistakes. I think lack of informations regarding Bankruptcy & Debt Settlement is the main reason behind this mistake. So, As a financial writer I gathered few experiences regarding this topic. Those may help you to choose the right one among these two.



If you want to lead a debt free life then you have to choose bankruptcy or either debt settlement. But here one question may arise when debt settlement is the best way? & when Bankruptcy is the best way? So, here is the answer below....


The very simple logic is if your debt is unsecured then just go for debt settlement this will be good for you. Because debt settlement company will try to get more discounts from your creditors. But if your debts are secured then it will not a good options for you. Because then all your payable amounts are fixed.


On the other hand through bankruptcy you will overcome your debt problems but it will hamper your credit score. And it will be complicated to get any further debts in future. So, In primary stage debt settlement is good for you & keep bankruptcy as your last option.

9 comments:

murr said...

Bankruptcy was the worst nightmare before these debt companies showed up.

As the economy is passing a tough time, it is obvious that more and more people with face problems in handling their debt. It is a relieve that few financial institutions are there to help those people. There are several websites too that assist people to come out from the debt burden. http://www.debtreliefgeek.com is one of such sites.

justin said...

Bankruptcy should be the last resort, As it will damage our credit for up to 10 years. Debt settlement is a better way to solve debt problems and protect our financial futures. I used the Bills.com debt settlement guide to see if this is an option for me. Lastly, if it comes to bankruptcy always seek counsel from an attorney who understands your situation.

seoindia said...

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debt said...

Debt Negotiators Online will help you navigate the maze of debt management options.
http://debtnegotiatorsonline.com/bankruptcy-versus-debt-settlement/

Kara said...

If debt settlement is an option, then it is definitely the better of the two. Bankruptcy stays on your credit for far longer and is much more difficult to recover from. For a free consultation check out this site: http://www.debtsettlementresource.com/consultation.html

Anders said...

Hello Ken. I've started a new blog at http://bankruptcyequityhomeloan.net , I was wondering if you'd like to do a blogroll link exchange with me as it could benefit both of us. Let me know if you're interested. Thank ya.

James said...

IMHO, Bankruptcy should be considered as a last resort. It is better to opt for debt settlement, as what your creditors may advice to you. Consider other options before opting to bankruptcy.

LeD'z said...

need to think well before opting one...seek help first to debt counselor or look for a debt settlement company

globalprofeesional said...

Before opting for any of the options the pros and cons of both should be taken into consideration. To Get out of Debt is a good idea but not at the cost of ruining your credit report.