What are the advantages of debt settlement over bankruptcy?
Although many people believe that bankruptcy is the only way out of extreme debt problems, and often rush into it in a desperate attempt to become debt-free quickly, many sources say bankruptcy should only be used as a last resort. There are many other debt-relief avenues to explore before turning to bankruptcy, especially since bankruptcy can have a devastating effect on your credit. Bankruptcy will stay on your credit report for up to 10 years after the filing has been discharged. Additionally, given the recent changes to bankruptcy law, it’s difficult to actually discharge all of your debts under bankruptcy. You may be forced into a payment plan with your creditors, and still see the black mark of bankruptcy on your credit report. With debt settlement, you can rid yourself of some of your debt, and feel good about paying back the remainder, all with a less harmful effect on your credit.
