If both the options are compared, there is absolutely no doubt that both the solutions will help you overcome your credit card debt. However, the actual solution provided by both the options is very different. As far as bankruptcy is concerned, it involves approaching the court and begging of your debts.
You admit that you do not have the ability to manage your debts. Of course, this admission will be verified by the attorney of the court and the trustee before it is accepted. However, once the court agrees with your view, it will free you from your obligation of repayment of debt.
North Carolina Bankruptcy Lawyer, Credit After Bankruptcy, Chapter 12 Bankruptcy,
On the other hand, debt settlement involves such an admission to the creditor. You admit that you are not in a position to repay the debts and request a discount in exchange. Once you get the discount, you will be duty bound to repay the balance amount.
As you can see, both the solutions offer different advantages and different disadvantages. As on date, debt settlement is always a preferable debt relief solution. This is because lenders are agreeable to a settlement.
In such a scenario, why should you antagonize them by going in for bankruptcy? Creditors never appreciate a bankruptcy. In a scenario where creditors are actually encouraging individuals to go in for debt relief in the form of settlement, still going in for bankruptcy does not make sense.
Hence, the mention of bankruptcy on your credit report today will show you in a very poor light indeed. Don't you think that a fifty percent discount should be enough to help you overcome your debt problems? If you are so far into debt that even a fifty to seventy percent discount will not help, then you must have been very irresponsible with your finances.
Whether this is true or not, that is a conclusion that the credit card issuers will determine. Hence, going in for settlement is always going to look better on your credit report. Further, if you want to overcome the indiscipline and if you want to really improve your financial abilities, you should go in for settlement.
The settlement will give you an opportunity to repay at least thirty to fifty percent of the debt in a disciplined manner. Once you convince the lenders that you have the ability to make regular repayments, you can always going in for a higher loan. On the other hand, bankruptcy does not give you such an opportunity.
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 Do It Yourself Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment