debt management versus bankruptcy

[mage lang="en|de|en" source="flickr"]debt management versus bankruptcy[/mage]

With sophisticated and weakened in today's economy, consumer debt continues to rise. No matter the situation, unemployment, illness or additional spending, can be financed, very overwhelming. Guilt is just part of life, but too much of it makes life difficult to enjoy. Two solutions to the financial Relief and debt management are filing for bankruptcy or debt settlement procedures. Both methods help to consumers, by improving their financial Situation and also the provision of immediate relief from harassing creditors. Bankruptcy is on the other hand, quite different, with two different types, Chapter 7 and Chapter 13

Within a settlement and the debt is within two to three years and paid actually between 40 and 60 percent of the total debt be paid. Chapter 7 bankruptcy erases unsecured debt, so you start from scratch, although it is very affecting your credit. Chapter 13 bankruptcy provides a repayment plan of usually 3 to 5 years, paid off debts and after that time, all outstanding debt will be erased.

Debt settlement is similar to Chapter 13 bankruptcy, that allows you to pay back some of the debt over a certain time period. But unlike the bankruptcy is not to remain on any permanent record. Bankruptcy can stay on your records for up to 10 years, compared to debt, which is not giving up your history, all of them.

Debt settlement is the process if the negotiations with the creditors on lower balances, or forgive them, cut all together, the interest rates, lower monthly payments or one or even all these options. Bankruptcies are designed to eliminate debt and help to repay the debts under the protection of bankruptcy court. They are often referred to as "restructuring" or "liquidations".

With the proper planning and hard work that can help both of the above mentioned methods, debt and finances back to get under control.

By the way, by researching and comparing the best debt settlement services in the market, you will be able to determine the one that meets your specific financial situation. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Settlement Companies website – where you can see his best rated debt settlement service recommendation.

Visit for further information and read our full review of the best debt settlement company, plus articles and video training about how to get the most of your debt settlement process.

Debt Management Tips : How to File Bankruptcy

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