You might have come across various sources that recommend that debt settlement is a better option than bankruptcy. However, should you trust these sources? Yes, it is a fact and has been established on a number of occasions. Debt settlement is regarded as one of the most effective debt solutions for people who have a huge amount of debt and are thinking about filing bankruptcy.
When you’re trying to get rid of your debts in a legitimate manner, you mustn’t act in haste. You should be perseverant and evaluate every option that’s available to you. In real life, you would see many people are suffering from debt problems even after filing bankruptcy. Given below are some valuable information that can help you understand why debt settlement is a better option than bankruptcy:
When you opt for bankruptcy, you shouldn’t think that all your debts will be discharged. There are various types of unsecured debts that are not included in bankruptcy proceedings such as back taxes, student loans, child support, unscheduled debts, alimony and government penalties. You have the responsibility of paying these bills individually even though you have filed bankruptcy. In contrast, you can practically get rid of all types of unsecured debts through settlement or negotiation.
Bankruptcy hurts your credit score beyond repair and it remains on your credit report for 10 years. Settlement is not so detrimental to your credit score and you have the opportunity to better it once you achieve financial freedom.
Debt settlement is a securer method than bankruptcy because the negotiation agencies work as a mediator between the debtors and the creditors. They always try to create a win-win situation which is beneficial both for you and your creditors. In bankruptcy, you have to sacrifice your valuable properties.
Under bankruptcy proceedings, there’s a limitation that majority of people have a tendency to ignore. An individual who chooses bankruptcy can’t qualify for the same for the following 6-8 years. You lose a number of financial opportunities and at the same time, you ask for a number of problems. On the other hand, debt settlement doesn’t involve such constraints.
Any qualified or skilled finance professional would suggest you to go for settlement when you wish to get rid of your dues in a lawful manner.
Getting a genuine settlement company is not that hard but you should understand where to search for. It’s always prudent to use a debt relief network that would help you find reputable agencies and make sure that they have an established track record.