Debt settlement or bankruptcy - Which better to repay debt?

Depends on your financial situation.

Bankruptcy is a better option to pay off debt when:

You want to get rid of huge amount of debt in just 3-4 months
Your creditors have filed a lawsuit against you
You have assets that can be liquidated

Bankruptcy will generally cause the heavier damage to your credit report. Chapter 7 and chapter 11 bankruptcy both remain in your credit report for 10 years, whereas chapter 13 bankruptcy remains for 7 years.

In case of debt settlements, the accounts are removed from your credit report 7 years from the first date of delinquency.

So, it's up to you....

If you can pay a portion of your outstanding balance, you can opt for settlement. By doing so, you can get rid of your debts fast. However, you would have to pay a percent of the forgiven debt amount.

If you ar struggling with an intense financial crisis and your creditors are about to file a lawsuit against you, then your option should be filing bankruptcy to get out of the debt within few months.

However, if you are earning a decent amount of money and want to pay off a portion of your debt, then go for a settlement.

Bankruptcy should be the last option. there is bankruptcy chapter 7 and bankruptcy chapter 13. Chapter 7 should be considered when you have no other alternatives like no income or very low income to pay your bills. On the other hand chapter 13 is an option when you do have sufficient income but are struggling to pay. In this case they can offer to reorganize your debts and you pay monthly to an assigned receiver by the court(I think that is the correct term) and he pays the debt on your behalf. You need to consider your financial situation. Feel free to contact me if you need more information.