Bankruptcy Or Debt Settlement - Which Debt Help Tactic Works Best for You?


Debt can be a cause for great concern and especially when the amount of accumulated debt is more than ten thousand dollars. Repaying the debt becomes very difficult when the streams of steady income dry. Two potential solutions to resolving this problem can be to opt for debt settlement or to file for bankruptcy. You need to weigh the pros and cons of both the options to decide which one is best for you.

Before you commit to an option, it is important to determine the extent of your debt issue. For this, you can ask for a copy of your credit report from any of the three major credit reporting agencies (TransUnion LLC, Equifax Credit Information Services, Inc., or Experian) and check the report for any inaccuracies that may have occurred or for accounts with balances that are actually paid in full. You can then determine the actual amount of debt incurred and take a decision on which option to choose.

How Much Is A Bankruptcy Lawyer, Chapter 7 Bankruptcy Attorney, Cost Of Bankruptcy Lawyer,

It is also important to find out how much expendable income you have available for repayment. You can arrive at your expendable income by reducing your mandatory living expenses from the monthly income available. If you have expendable income at your disposal that you can use to repay your debt, then you can consider the option of debt settlement. However, if the expendable income is a zero or negative figure, then you should opt for bankruptcy filing.

You should also determine if your debt situation qualifies for debt settlement services by examining the total amount of unsecured debt you owe ($10,000 or more) and understanding the drawbacks associated with debt settlement such as the potential for increased creditor calls, possible collection lawsuits initiated by creditors, damaged credit and tax problems.

If you do not qualify for debt settlement you need to take the decision to opt for filing for bankruptcy. You need to consult a good attorney to determine whether you should file for bankruptcy under Chapter 7 or Chapter 13 and the rules and regulations attached to both of these. You also need to decide whether filing for bankruptcy will resolve your credit problems. Bankruptcy may not be able to absolve you from your responsibility to pay certain kinds of bills. Also filing for bankruptcy can have a much more severe impact on your credit report than debt settlement.


Credit After Bankruptcy

Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.

Rating of Credit After Bankruptcy




Get Online Application at online Bankruptcy Lawyer.

0 comments:

Post a Comment