Bankruptcy vs. Settlement
Matty If you are unable to pay the debts on your own, you can
Matty
If you are unable to pay the debts on your own, you can choose any debt management program and become debt free. These are the following methods that can be taken as an option.
- debt consolidation
- debt settlement
- Bankruptcy
While you are trying to become debt free and improve your credit, look out for good debt solutions. Debt consolidation is viewed more favorably by the lenders in comparison to debt settlement or bankruptcy.
Your payment history is also keenly observed by the lenders. They will like to analyze from your previous accounts and payment history if you will pose any financial threat to them in the future. Be regular in your payments. If you choose a debt settlement05 program or a bankruptcy and have a good payment history after taking these programs, the lenders will overlook any negative remarks in your file.
A good settlement company will negotiate with your creditors for half the total amount. You have to default in these bills for 3 to 4 months for the negotiations to take effect.
A consolidation program will wipe off most of the financial charges, late fees from the total amount. You will be offered easy monthly payments and pay them off.
If you choose to file bankruptcy (consider it to the be last option), the debts will be discharged and you will have to rebuild your credit from the beginning. It might take 2 years to get the good standing in front of the lenders. Again, your payment history will be keenly viewed after bankruptcy is filed.
Your main concern should be to become debt free11 thinking about your credit for the future.
debt free for life is what my goal is. Don't plan on having ano
debt free for life is what my goal is. Don't plan on having another credit card for the rest of my life. I understand all the risks with settlement and how it works. I just wondered how it compares with bankruptcy.
What is the difference between debt consolidation and debt settl
What is the difference between debt consolidation and debt settlement?
Please read the posts above as well as this page http://www.d
Please read the posts above as well as this page
http://www.debtconsolidationcare.com/forums/comparison.html
If anything is left unclear, let me know. I will try to clear or if not me, someone else will clear it for you. I learnt from all the posts in this forum and this is the reason I am able to share my knowledge. Someday you will also share your knowledge.
Again, how does bankruptcy compare to settlement?? Can someone
Again, how does bankruptcy compare to settlement?? Can someone please help? I know that bankruptcy is worse than settling but how much worse.
Analyze your present financial situation and know how much you c
Analyze your present financial situation and know how much you can afford to pay each month. If you can save a greater portion from your monthly income, use consolidation at the first preference. If this doesn't work, consider settlement as the next option. If you are going through very hard times and can't afford to pay in any of the plans, bankruptcy is the ultimate option. Bankruptcy is a negative remark like settlement that will appear in your credit file. Settlement will stay for 7 years but a bankruptcy will stay for 10 years.
Your future lenders will consider both of these programs as a derogatory remark. Your payment history will determine if you are any kind of serious threat to their finance. My personal take is that you should not file for bankruptcy if the above program fits to your needs. In case you have filed for bankruptcy, you will have to rebuild the credit from the beginning. Let us know what you think!!