Choosing between Bankruptcy and Debt Settlement

Managing your debt may take more effort than you thought it would. There are many things that should be put into place in order to clear away the debt and start anew. For many people, filing for bankruptcy may be the only option for them, especially if the debt that they have is more than their monthly income. However, filing for bankruptcy should be the last and final option for settling debts. There are several options in clearing away accumulated debt. Consulting with a bankruptcy lawyer would help you in determining whether you should or should not file for bankruptcy.

Another option for eliminating debt is debt settlement or debt management. This option is possible and available for those who have higher income in relation to their debts. If your monthly income is more than debt, then you can opt to go with debt settlement. This option will provide you with a settlement plan that would allow you pay a lump sum to the debt settlement company who would then be tasked to divide the payments for your creditors. You need to find a legitimate debt settlement company who could help mediate between you and your creditors. In order to protect yourself from settlement companies who could take advantage of you, it would help to consult with your lawyer.

There are many advantages of choosing debt settlement over filing for bankruptcy. Although debt settlement is also viewed as a lighter form or bankruptcy, it does not hurt your credit score and credit rating as much as bankruptcy does. You also get to keep many of your properties, but there are options in bankruptcy that would allow this as well. In order to have the best plan to eliminate your debt, you have to talk with your lawyer about your possible options and how you would want to move forward. Debt settlement and bankruptcy are just among the options you can choose, you just have to make sure to research and find out which one will work on you and your situation.