Debt is an issue millions of Americans cope with. Both bankruptcy and debt settlements are viable solutions for getting out of debt, although they’re extremely different. Debt settlement and bankruptcy offer different benefits to debtors and each uniquely impacts a person’s financial future. Whether you’re struggling with credit card debt, an unmanageable mortgage, or student loans, you should understand your financial options. Here, we’re going to discuss the difference between bankruptcy and debt settlement so you can make an informed decision on how you should handle your debt.
What Debts Can Be Included In Bankruptcy?
Both Chapter 7 and Chapter 13 bankruptcy alleviate financial burdens. Chapter 7 bankruptcy can be a viable option for individuals with limited financial resources. Chapter 13 bankruptcy can be a viable option for individuals with numerous assets. Filing for bankruptcy, however, doesn’t immediately eliminate all your debts. There are specific types of debt that can and cannot be discharged in bankruptcy. It is important to understand what type of debt you have. For instance, student loans can generally not be discharged in bankruptcy.
It’s important to note that although filing for bankruptcy will eliminate your debt, it will also lower your credit score and impact your creditworthiness in the future. A knowledgeable attorney can assist you in understanding what debts can be discharged in bankruptcy and which cannot. If you’re struggling with debts that are not dischargeable, all hope is not lost. There are alternative solutions for helping you get your finances back on track.
What is Debt Settlement?
Debt settlement is a financial solution that works to reduce your debt and make your debt payments more manageable. In a debt settlement agreement, the debtor and creditor decide on a settlement amount. The debtor then repays that amount to the creditor instead of the initial, larger amount owed. Once that amount is paid, the debt is considered paid in full.
Although you can negotiate your debt on your own, individuals who attempt to do so are rarely successful when it comes to settling multiple debts. An attorney with experience handling debt settlement cases knows how to negotiate with creditors to reduce your debt to the smallest amount possible. Most importantly, an experienced debt settlement attorney can formulate a plan to manage settlements on many debts at once.
Can I Settle My Debts for Less than I Owe?
The most significant benefit of debt settlement is that you can settle your debts for less than you owe. If you need help managing your debt payments, debt settlement is a feasible option that could work for you. A debt settlement attorney can walk you through the details and options associated with debt settlement to help you understand which financial solution is the best one for your situation.
Hire an Aggressive Debt Settlement Lawyer Who Will Fight For You
You don’t have to handle the burden of your debts alone. There are financial solutions available to you right now. McCarthy Law PLC is a trusted source of legal representation that can help you navigate your path to financial freedom. They have extensive experience negotiating debt settlements and will work tirelessly so you owe the least amount possible.
You deserve a future free of financial stress. The sooner you contact an attorney, the sooner you can walk away debt-free. The attorneys at McCarthy Law PLC are passionate about helping you eliminate your debt. Call us today at 855-976-5777 to schedule a free case evaluation or contact us online. We’re here to help you erase your debt, restore your credit and get your life back