How Bankruptcy and Debt Settlement Affect Your Long-Term Credit

How Bankruptcy and Debt Settlement Affect Your Long-Term Credit "When individuals find themselves in debt, they typically consider declaring bankruptcy as a solution. This is not a good solution, particularly because it can negatively impact your long-term credit and cause you to incur additional debt.Debt settlement will make your life simpler because you can avoid putting your financial situation in jeopardy further. Debt settlement allows you to negotiate your debt and ensure that you receive a substantial enough discount to continue making payments. Thus, you will not have to confront a court decision and your credit score will not be significantly affected. A bankruptcy would be extremely distressing and would destroy your credit score to the point where you would be ineligible for another loan.In addition to costing you more money due to attorney fees, filing for bankruptcy can cause you to lose all of your assets. If the court decides to seize your assets to cover the debt you owe, you could lose your home, your vehicle, and virtually everything else in your name. If you opt for settlement, the entire process is relatively straightforward: you employ a debt settlement company, verify that you are eligible for a settlement and have a minimum amount of debt, and then you begin negotiations. Once the negotiations are concluded, you will begin to pay the amount you owe. It is very easy, and you do not need a counsel or to attend court hearings for your bankruptcy trial. When deciding on debt settlement, the only effort required is to hire a company to do the work for you. In addition, you can obtain a new loan much more quickly, as bankruptcy requires you to wait between seven and eight years for your credit score to be expunged.Debt settlement has many more benefits than bankruptcy, and if you are ineligible for debt settlement, you can find alternatives that are preferable to bankruptcy, such as consolidation or debt management. If you care about your financial situation, you should only consider bankruptcy as a last resort, because it may damage your finances more than you anticipate.
" - https://www.affordablecebu.com/