Can Debt Settlement Be Bankruptcy Alternative?

Posted on 6:30 PM No Comments

Debt Settlement can be the alternatives of Bankruptcy for those who have multiple debts. When you are in multiple debts and unable to pay them off, at that point of time it is better to choose debt settlement program rather than bankruptcy filing. Because you will face problems in future especially regarding loans. Your credit report will show the case of filing bankruptcy for several years and with this negative credit report it will be hard to get further loans. The lenders will certainly check your credit report before granting any loans. So think twice before filing bankruptcy.

How the program works?

If you opt for the service of debt settlement then settlement companies offer you to set up an account with them and send monthly payments there. The monthly payment will be according to your convenience. This is for to build up a fund which can be used to settle debt with creditors. When the accumulated money rose in such an amount which is feasible to deal with creditors, the settlement company tries to contact the creditors to settle debt with lower amount.

The Debt Settlement companies have highly trained negotiators and have experience in settling debts with creditors; have great idea of Federal Laws and current financial matters.

Benefits of Debt Settlement:

1) Debt Settlement companies offer services like stopping collection harassment. Some of the companies act so professionally that they ask the creditors or collections agencies not to call the customer but to call them. This service is very popular to the consumers.

2) Your credit report which can be negative by filing bankruptcy will be better. So in future you will not face difficulties for further loans.

So, it is always better to go for Debt Settlement but to Bankruptcy.