The greatest benefit of declaring bankruptcy is the ability to avoid paying arrears to creditors. However, the compensation you must pay in lieu of declaring insolvency is not less than the amount you avoided. In extreme circumstances, you would not only lose your properties but also your future financial opportunities.
Debt settlement programs require you to make payments to creditors, but these programs have no negative long-term effects. The negotiation programs are quick and efficient. They do not impose any burdens on you. Consequently, choose the settlement programs if you have the option. Bankruptcy should be your last resort. Choose bankruptcy only if you believe you have exhausted all other options.
After learning about the effects of both debt settlement programs and bankruptcy, you must be curious about their consequences. While Chapter 7 of insolvency states that lenders may seize a portion of the defaulter's property in lieu of the unpaid amount, Chapter 13 states that a defaulter must live strictly under the court's jurisdiction. These clauses are both demeaning, mandatory, and unavoidable.
In contrast, settlement programs result in fewer savings for you because you must ultimately repay the creditors, but the total arrears are significantly reduced through successful negotiation. Therefore, consider your circumstances and choose a superior program.""
" - https://www.affordablecebu.com/