First, settlement requires less time than bankruptcy.
Secondly, bankruptcy-related financial difficulties are eliminated through settlement. After settlement, a person's credibility is restored, which is not possible in the case of bankruptcy.
Thirdly, there are no legal complications involved in settlement. In bankruptcy, constant communication with the counsel is required, whereas in settlement it is not.
Finally, the method of resolution does not include credit counseling. People must seek credit counseling if they file for bankruptcy. They will be evaluated by counselors designated by law, who will evaluate a consumer's situation based on his or her income and spending patterns. If the counselors believe that the consumer can repay his or her debts in full or in part, the consumer will not be permitted to file for bankruptcy.
In contrast, a person need only have a total consolidated debt of $10,000 or more to be eligible for settlement. To minimize settlement time and expense, the debt must be consolidated in one location. For optimal results, the individual is advised to employ a professional settlement company. The company's negotiator will advise the consumer to become delinquent in order to demonstrate financial hardship. When the consumer ceases making payments, the creditor waits 12 to 16 weeks before selling the debt to a collection agency for 20 to 30 cents per dollar. The negotiator then contacts the creditor with an offer ranging from 30 cents to 50 cents on the dollar. The creditor agrees to the terms because the ROI for the collection agency is 100 percent and the consumer's debt is reduced by at least 50 percent. This is how a debt settlement can be negotiated.""
" - https://www.affordablecebu.com/
