How is debt settlement different from bankruptcy?

Bankruptcy is an option that is generally treated as a last resort.

It will remain on your credit report for 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment.

Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report.

In addition, since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, the method of liquidating assets to eliminate your debt.

You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition.

Under Chapter 13 bankruptcy, your debt payments are simply restructured meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy.

 Debt settlement is an attractive alternative to bankruptcy. It provides a convenient method to save money to help pay your debts in the near future.