Avoidance of bankruptcy and maintenance of an excellent credit rating
If you have an excellent credit score, declaring bankruptcy can be problematic. Here are some of the challenges you may encounter.
The credit rating will fall to zero.
Your creditor will not offer you any future services.
Most financial institutions prohibit such borrowers permanently.
The aforementioned three issues are quite challenging to address. For example, you will require a high credit score when the economy emerges from recession. At this time, banks will offer debtors loans. Does debt settlement pose any difficulties for borrowers? The response is no.
Analyzing the benefits of alternatives to bankruptcy to avoid credit score reduction
There are three bankruptcy alternatives.
Reduction of liability through settlement
reducing payments via debt consolidation
Increasing the flexibility of your payment options through personal arbitration
All three alternatives produce distinct outcomes. However, every alternative is preferable to bankruptcy. They do not negatively affect your credit score. For example, liability consolidation is more appropriate when you have multiple debts. Examples include the utilization of multiple credit cards and secured liabilities. In this case, you can combine all of your payables and regard them as a single entity. Similarly, each of the other bankruptcy alternatives has its own advantages and disadvantages. You must evaluate all bankruptcy alternatives and compare their outcomes. None of the bankruptcy alternatives are suitable for every debtor.""
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