Posted on July 6, 2009 at 4:43 am Hello, can you please make a quick comparison in terms of their impact in one's life..in the long run..Thank you!

Posted on July 6, 2009 at 5:13 am Magnus when you said long run, you meant the credit report and your ability to obtain credit, loans, etc., correct? Take note that bankruptcy is one of the worst things that one can have in the credit report, next to a foreclosure, and an unsatisfied judgment..Okay here's a quick stat:The Credit Report:1) Bankruptcy-Chapter 7 stays on your credit report for 10 years.-Chapter 13 stays for 7 years-On your public records, 20 years.2) Debt Settlement-A "settled" credit card account would remain for 7 years. Debt/Properties/Time:1) Bankruptcy-you may lose some of your properties -all or most of your debts gets wiped off-can discharge both secured and unsecured debts-Chapter 7 is usually a 90-day process-Chapter 13 is 3-5 years2) Debt Settlement-can pay for unsecured debts only-the program takes 12-36 month to finishCollection Calls/Protection1) Bankruptcy-has the automatic stay2) Debt Settlement-can request the creditors/collection agencies to transact through the them rather than the consumer......All in all it depends on your needs (type of debt, amount of debt, do you need the automatic stay..) and your financial situation (income, property).Why not fill out a form and avail of the free consultation? Your situation can better be assessed by a debt consultant. Don't worry it's free. Good luck!

Posted on July 6, 2009 at 5:19 am The thing with bankruptcy is it is a legal process. Meaning you will most likely need a lawyer to help you with everything and that is extra cost for you. If your debt is mostly unsecured, debt settlement is definitely better than bankruptcy for you. Even if your credit report reflects that you've defaulted on your payment for long periods of time, at least you'd be able to recover from it faster than if you've gone through bankruptcy. "Settled" and "Full" are much better on the credit report than a bankruptcy.

Posted on July 6, 2009 at 5:22 am I agree with itsnatasha -- however, if your home is in danger of being foreclosed, or if the debt that you are trying to find a relief on is secured--and you don't want to lose a property--bankruptcy maybe able to save you--and that makes bankruptcy a better option than debt settlement.

Posted on July 6, 2009 at 5:28 am In terms of future applications: credit, loan, apartment, job, promotion..etc. both debt relief options have success stories, I can imagine. It's not the end of the world for the consumer if it so happens that he/she sought the help of the government (bankruptcy) or a private institution (debt settlement company) to relieve himself of debt...some employers, lenders, or landlords might view those debt elimination processes as a positive step toward a more financially responsible life.I think one key for the future, as always, is to 1) be free of debt 2) have a good paying/steady job.You'd be okay then. First order of business though, before thinking of the future, is to ---eliminate the debt.

Posted on July 7, 2009 at 3:13 am Settling the debt may prove to be more advantageous for you in the long run. When creditors see a bankruptcy on your credit report, they may either deny future applications for credit or apply a higher interest rate towards you. Bankruptcy also needs to be reported in each and every application you fill out. At least with debt settlement you'd still be able to make payments on your account and bounce back from the debts that you previously had.

Posted on July 7, 2009 at 4:05 am Thank you everybody! And did you say that bankruptcy can save me from foreclosure?

Posted on July 7, 2009 at 4:16 am Yes but only temporarily, via the automatic stay. Once your petition is approved, the creditors, lenders cannot communicate with you anymore to collect.

Posted on July 7, 2009 at 4:22 am I agree with you there but the creditor/lender can usually get around the automatic stay by simply asking the bankruptcy court to lift the stay. For example, if your house is being sold (foreclosed)  the day before you file for bankruptcy, the creditor/lender can file for that stay to be lifted, or you have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property anyway. Soon after you file for bankruptcy and your creditor/lender finds out about it, it would immediately ask the court for permission to proceed with the foreclosure -- and that permission is likely to be granted under such circumstances.

Posted on July 7, 2009 at 4:26 am I see...Which Chapter allows me to pay for mortgage again? Chapter 13 right?