Debt Settlement and Bankruptcy - How They Eliminate Debt in Different Ways
"There are a few options available to you if you're in a position where you need to consider debt relief strategies to bring your financial situation back into focus. First, it depends on your current debt situation. If you are able to manage your debt but still struggle from paycheck to paycheck, you may not be in a position to declare bankruptcy. A debt settlement company may be able to negotiate a solution for you, possibly for less than what you actually owe. Here are the ways in which bankruptcy and debt settlement eliminate debt differently:* Bankruptcy debt relief is typically a last-ditch endeavor to survive. It is for those who cannot pay off their debts and are overwhelmed in creditor phone calls and late notices. Bankruptcy debt relief is desperation. It does not care if your credit score improves or if it leaves a black mark on your account records. Bankruptcy eliminates debt by utilizing the legal system to intervene, demand that your creditors cease harassing you, and then declare your inability to repay what you owe. This bankruptcy will remain on your credit report for several years.In contrast, debt settlement is a rational approach to debt relief. It is an attempt to rectify a poor situation by repaying what you owe within a reasonable time frame. A reputable debt settlement company can negotiate with your creditors to accept less if you assume responsibility for paying off the debt. The debt settlement method of debt relief is not as drastic as bankruptcy, nor is it as detrimental to your future credit. A financial settlement can allow you to regain financial control and emerge from a negative situation with a positive outcome.If you have more than $10,000 in unsecured debt and want to be able to pay off what you owe without filing for bankruptcy, a settlement may be your best option.
" - https://www.affordablecebu.com/
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"Debt Settlement and Bankruptcy - How They Eliminate Debt in Different Ways"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 03 June 2023
and updated on 03 June 2023