Debt Settlement or Bankruptcy

Do I choose bankruptcy or debt settlement to pay off all my debt?

Debt relief can be achieved by using bankruptcy or debt settlement.   Like with any debt relief program, make sure the company is a highly rated BBB debt settlement company or if its bankruptcy that you are seeking, make sure the attorney is highly rated with their state bar.

Should a person with a financial hardship choose debt settlement or bankruptcy? 

Like when a person has a disease, they would usually choose a cure over treatment, right?  Debt settlement won’t cure your financial sickness immediately, but it can be the cure for your debt problem in the fastest possible time-frame when being compared with bankruptcy vs. debt settlement.

Debt settlement allows a consumer to pay off credit card debts and all unsecured debts at a reduced amount, based on their hardship and through our debt negotiation program.

Is it better to file for bankruptcy or debt settlement?

Bankruptcy vs. debt settlement:

 

Here are a few of the main debt settlement pros:

• Pay back your unsecured debt, but at a reduced amount.
• Save money and time when compared to Chapter 13 bankruptcy or debt management plans.
• Be in a position to rebuild your credit score after graduating on the program, easier than if you were to file for bankruptcy.
• Have only one monthly payment and be debt free in 36 months or less on average.  (creditors are not paid on a monthly basis)

Here are a few of the main debt settlement cons:

• Will lower your credit score.
• Will get creditor phone calls in the beginning of the program.

Learn more about credit card debt settlement vs. bankruptcy today by calling 866-376-9846! 

The consultation is free and you will speak with only an experienced Enrollment Specialist from Golden Financial Services, the premier debt company in America!

 Here are a few of the main bankruptcy pros:

• Bills will be liquidated rather than a payment arrangement being made when filing chapter 7 (liquidation) bankruptcy.
• Chapter 7 and 13 bankruptcy will put a stop to all collection actions by creditors, including foreclosures, repossessions, and garnishments.

Here are a few of the main cons with bankruptcy:

Chapter 7 bankruptcy –

• If you have assets, they may be sold in order to pay your creditors.
• Stays on your credit report for up to 10 years and chapter 13 bankruptcy stays on your credit report for 7 or more years.

Chapter 13 bankruptcy –

• The majority of your income goes to paying creditors and you are left with a very small amount of money to survive.
• Stays on your credit report for 7 years or longer.
• Your financial well-being is being left in the hands of a judge and out of your control.

With all bankruptcy –

• Bankruptcy all together makes it pretty much impossible to get a mortgage for at least 5 years.
• Not all debts may be discharged like student loans and back taxes.  Student loan assistance is available here. 
  
• Bankruptcy can be embarrassing.
• Even if you need to rent a new apartment one day, having bankruptcy on your credit report can prevent you from getting approved.
• Bankruptcy has the worst negative affect on your credit score.  In the future if you are approved for any type of loan, you will most likely have the highest interest when creditors see that you have bankruptcy on your credit report.  This can cost you more money over the long term.

When trying to decide on debt settlement or bankruptcy it is important to educate yourself first.

Call Golden Financial Services for a free debt relief consultation at 866-376-9846!