Debt Settlement vs. Bankruptcy
Serious debt is overwhelming in many, many ways. You may feel disheartened and embarrassed or even not sure of how to proceed in your life because your debt is so huge. Many people feel that they have failed on a number of levels and the thought that they will not be able to provide for their families is heartbreaking. It is at this moment, when the debt that you have is so severe you cannot seem to crawl out from under it, that you will likely start to consider you options.
When it comes to debt that cannot be handled, there are two main choices. There is filing for bankruptcy and there is pursuing a debt settlement plan with an outside company. To find out more about your options, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.
The Differences
Debt settlement is a process in which an outside agency goes into talks with all of the companies you are indebted to and agrees on a substantially reduced rate of debt and an aggressive repayment plan of the remaining amount. In exchange, the company will ask for a hefty fee.
Things to keep in mind:
- Debt settlement companies may not always have your best interests in mind. Many will make you worse off financially.
- Bankruptcy will affect your credit for seven years, but many of your debts will be dissolved, depending on the type of bankruptcy you file for.
- Debt settlement also negatively affects your credit.
Contact Us
For more information on debt settlement vs. bankruptcy, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.
