Bankruptcy VS Debt Settlement What Is The Best Choice? | ArticlesBase.com

<p><em><strong>When you find yourself in a financial situation that seems impossible to fix you may be considering debt settlement or bankruptcy.</strong></em></p> <p>There is a large difference between the two options and you should consider your choice carefully.Debt settlement companies give you the ability to renegotiate your debt and pay back what you owe at a considerably lower monthly payment.</p> <p><strong>Aurora Lillo Editor of the "Best Debt Relief Programs" website -- <a href="http://www.bestdebtreliefprograms.net/" rel="nofollow"><a target="_blank" href="http://www.BestDebtReliefPrograms.net" rel="nofollow">http://www.BestDebtReliefPrograms.net</a></a> -- pointed out;</strong></p> <p>“…These companies have the ability to negotiate with your unsecured debt holders to lower interest rates, remove or stop over limit and late payment fees and best of all stop the harassing phone calls…”</p> <p>A debt settlement company will work with you and your creditors to establish a repayment plan that benefits everyone involved. Your new monthly payments can be consolidated down to one lump sum per month and often at half the amount of what you are currently paying. Many times you can be completely out of debt within five years as opposed to the twenty five or more it would take making minimum payments to your credit card holders.</p> <p>“…If you choose to file bankruptcy you will have one of two options. You will either file Chapter 7 or Chapter 13. If you file Chapter 7 you will be absolved of all your debts and unable to get credit for many years. Chapter 7 bankruptcy shows on your credit report for ten years. Chapter 13 bankruptcy is reorganization bankruptcy where you will be required to repay all your debts through the court. The bad point of this type of bankruptcy is that there is no negotiating involved. The court will set your repayment amount regardless if you can afford it or not and there will be no reduction in debt. Even worse, your credit report will show a bankruptcy on it for a minimum of ten years…” added A. Lillo.</p> <p>Debt settlement is often the best way to take care of your debt. It can be accomplished at a fraction of the cost and a shorter length of time.</p> <p><strong>Further Information By Visiting; <a href="http://www.bestdebtreliefprograms.net/" rel="nofollow"><a target="_blank" href="http://www.BestDebtReliefPrograms.net" rel="nofollow">http://www.BestDebtReliefPrograms.net</a></a></strong></p><strong>About the Author:</strong><br /><p>Hector Milla runs his corporate website at <a title="http://www.opsregs.com" href="http://www.OpsRegs.com" rel="nofollow"><a target="_blank" href="http://www.OpsRegs.com" rel="nofollow">http://www.OpsRegs.com</a></a> where you can see all his articles and press releases.</p>