What exactly is bankruptcy? Declaring bankruptcy is a declaration that you are unable to pay your creditors. If the debt is unsecured, the debt is discharged and no assets are forfeited. This may appear to be a very positive thing, but in reality, bankruptcy is an expensive process that requires you to hire a lawyer and attend court hearings to prove your financial situation. This will necessitate a great deal of documentation and result in an overall stressful process.
When you register for bankruptcy, you do not give anything to your creditors, who may not be pleased. If they prevail in court, they will receive the total debt plus any additional taxes. This can be avoided by contacting them beforehand and determining if there is a method to avoid bankruptcy and pay off your debt. This typically results in a settlement, wherein you pay less and are not required to declare bankruptcy.
The method that makes the most use of this is debt settlement. There are a large number of specialized companies that will negotiate on your behalf for a fee. This can result in a reduction of 40–60%, and you will be able to pay off the remainder at reduced interest rates, thereby preventing further financial difficulties. They agree to such a substantial discount because bankruptcy represents a greater loss for them, and they would rather you pay less than nothing at all.
""The bottom line is that you shouldn't file for bankruptcy; instead, you should consider all of your other options, which may prove to be much better.""
" - https://www.affordablecebu.com/