Debt Relief Solutions - Why Opt For Bankruptcy When Debt Settlement is a Better Option

Bankruptcy is a solution that cannot be implemented on a piecemeal basis. Either you file for bankruptcy or you do not. You cannot declare bankruptcy for certain debts and continue to remain solvent as far as other debts are concerned. Hence, declaring bankruptcy just because you have a lot of unsecured loan does not make sense. There are various other loans to be considered. From your secured mortgage loan on your house to loans on your assets each and every loan will have to be considered. Each and every creditor will be informed that you have declared bankruptcy.

Hence, bankruptcy should not be filed lightly. On the other hand, you can always have carry out debt settlement with a single lender. If you owe 25,000 dollars on your credit card and if this is the only major loan that you are not in a position to repay, you can get in touch with this service provider and settle your debt. You can either employ a professional debt settlement company or you can employ your negotiation skills. In either case, the fact that you have settle your debt will not be known to others unless and until the agreement is signed and the same as reported in your credit score or credit history.

Until then, no lender or financial institution will come to know about your debt settlement decision.

When once you get a 70% settlement on your 25,000 dollar loan, other lenders will actually be happy because chances of full repayment of their debts increases. Since your existing debt has come down by more than half, you will have more cash in your hand even after payment of fees charged by debt settlement companies.

Hence, before you consider debt settlement, you should ask yourself why you are facing a financial problem. Is it because of a single credit card or single unsecured loan? If that is the case, you can always get in touch with the service provider and seek a settlement. Or, you can get in touch with all other lenders and seek a settlement claiming that the big lender has left you with no option but to opt for bankruptcy. Once you secure settlement from all these small lenders, you can proceed to get a waiver from the big lender as well. All these options are available only if you opt for settlement. If you opt for bankruptcy, you can kiss these options goodbye.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below: