Posted on
June 22, 2009
at
1:28 am
is debt settlement better than bankruptcy? i have $23k in debt and i wanted to know what's my best option in taking care of it.
Posted on
June 22, 2009
at
3:01 am
Both of them give you bad credit. Although bankruptcy's effect would take a longer period. Ten years on your credit report i think
Posted on
June 22, 2009
at
3:06 am
i wouldnt recomment debt settlement cos CHAPTER 7 made a much bigger impact n my life as a consumer ......... i was able to get back on my feet and clear myself off of debt. besides debt settlement takes a longer time to make the debt go away
Posted on
June 22, 2009
at
3:23 am
Debt settlement actually is a better alternative to debt elimination than bankruptcy. Yes, both forms of debt relief have an effect on your credit score, but debt settlement's effect is less paralyzing on your end than bankruptcy. Bankruptcy will reflect on your credit report for ten years, and 20 years on legal records.
Posted on
June 22, 2009
at
4:20 am
Bankruptcy may also prove to be more disadvantageous than one may think. Whenever you apply for a new job, or for new credit, or a new house perhaps, you will always need to disclose that information. Even if it's been wiped out from your records.You also need to go thru a lot of procedures when you file for bankruptcy. For one you need to take a means test to show how you fare against other families in your state with regard to income. It's a gauge that determines your ability to pay debts vs others in your aread who cannot.If anything, bankruptcy should be taken as a last resort in order for you to deal with your financial struggles.
Posted on
June 22, 2009
at
4:54 am
Well you really won't be able to settle secured debt like a home equity loan or a car loan, so if you have a lot of that and have very limited resources and assets, bankruptcy can be done. But I personally stress that it should only be done
as a last resort and nothing more. Choosing the path of settlement also means that you need to be delinquent on all your accounts in order to qualify for it. If you are already in that situation and still want to take care of your debts, that option is for you.
Posted on
June 22, 2009
at
5:26 am
ok.the $23k i owe is with different loans. i do nt have any secured ones because i am renting. and yes i am behind on rent as well. so what do you think i should do? can i go ahead with settlement now? can i do it by myself? how do you think i should go about it
Posted on
June 22, 2009
at
9:39 am
First of all, Purple Cow be careful- Chapter 7 bankruptcy does stay on your credit report for 10 years but Chapter 13 bankruptcy stays on your credit report for only 7 years. Now, debt settlement is a bankruptcy alternative for people who have the financial resources to do so. As mentioned, it has less of a negative impact on your credit report than filing bankruptcy. If you have any money in savings or have a friend or family member that could help you out with a large some of money you may be able to settle the debts right away since you are already past due. If not, setting aside funds on a monthly basis is your best bet until you have accumulated enough money to settle your first debt. This entails strict budgeting. You can try settling the accounts on your own or you can hire a debt settlement company to work on your behalf. These companies have experience negotiating with creditors and third party collectors and could most likely save you more money in the long run. You can fill out a form on DestroyDebt.Com to get matched up with a qualified provider.
Posted on
June 22, 2009
at
8:23 pm
I would have to say settlement is better than bankruptcy if you can manage it
