Pros and cons of filing bankruptcy or choosing debt settlement

I am disabled, going through a divorce and reside in Texas. I have an abundance of uncsecured debt and am already in collections..what are the pros and cons of bankruptcy versus debt settlement. (I've talked with an attorney about bankruptcy and to several debt settlement companies) I'm not sure what is best for me. Help!

Both these programs are a part of debt management. But debt settlement is better than BK. Texas is a non garnishment state, so you can't be sued by the companies. You should consider paying your debts on your terms instead of filing BK.

If you decide to do debt settlement, please research the company thoroughly. There are many people that have been scammed by bad debt settlement companies. You can do a google search on this site for debt settlement to get more information. good luck!

I agree with Sass. Many debt settlement companies have been sued. Check anybody out that you decide to do business with. You can call your Attorney Generals office and BBB and ask. KYSIDE38

The main difference between settlement vs Bankruptcy is if you bankrupt the automatic stay protects you from lawsuits and judgements.The other distinction is if court discharges your debt,it is gone forever.

If I lived in TX this is what I would do.

In TX they can't garnish your wages or take your home. In four years the SOL expires on those accounts you can't pay, and in seven years the accounts fall off your credit report.

Just don't pay them, if you can't afford to. And, don't declare BK. You won't need to.