Bankruptcy Or Debt Settlement? That Is The Question

July 14, 2010 - PRLog -- The answer to this question is that bankruptcy is never the answer and for most consumers a settlement is the right answer for them.

Aurora Lillo Editor of the "Best Debt Settlement Services" website -- http://www.BestDebtSettlementServices.com -- pointed out;


“...When consumers settle their outstanding accounts they typically contact a debt management company to help them negotiate the balance required to settle the accounts. These arrangements can reduce the money owed by as much as thirty five to forty percent. If consumers have a steady income and have some assets then this can be a very viable option. There can be payment arrangements made so that the monies owed get settled a little bit over a short period of time...”

Debt settlements are much better for a person’s overall long term credit history than bankruptcies are. Creditors see this type of settlements as consumers being responsible and trying to get back on track financially. Settling these amounts is not as complicated as going to court to having debts discharged by a judge. Consulting attorneys and filing the required papers in court does cost money also. Some of the accounts that are listed in the paperwork will not be discharged such as government secured loans such as student loans. During this process, people can lose their assets and even their homes which is not what happens when a debt arrangement has been put into place.

Consumers should not think of bankruptcy as an easy way out and that it just magically wipes their financial slate clean. People should contact companies that deal with this type of financial issue and ask them to evaluate their situation and see if anything can be done to help. Many people just jump to conclusions and think that this will not pay off in the end but if they ever want to get loans, credit cards, or a mortgage then it is. Potential creditors will charge astronomical interest rates and fees to those who have bankruptcies on their credit history. If the delinquencies are settled and are not listed as negative items any more then the person’s credit rating will be good and they will have decent rates assessed to their new accounts.

“...Consumers should write down their debts and take them to a debt settler and get an evaluation to see what portion of the balances might be able to be reduced and what payments agreements can be made. After the consumer has this knowledge then they can make their final decision...” added A. Lillo.

Further Information By Visiting; http://www.BestDebtSettlementServices.com