WP_Term Object ( [term_id] => 15 [name] => Debt Consolidation [slug] => debt-consolidation [term_group] => 0 [term_taxonomy_id] => 15 [taxonomy] => questions [description] => Look for the answer to your "debt consolidation" related question below. Simply enter what you need to learn in the search field and we'll try to find an answer for you. [parent] => 0 [count] => 35 [filter] => raw )

Debt Settlement vs. Bankruptcy

Back to questions list

When you compare bankruptcy vs. debt settlement, you should keep in mind that bankruptcy is the most destructive thing for your account. It will be removed from your credit rating after 7-10 years after the date it happened.

Debt settlement will also remain in your credit rating for around 7 years but it’s less destructive.

Consolidate Debt

When you struggled from bankruptcy, especially from Chapter 13 bankruptcy, a judge defines particular sum, which you will still pay to the lender.

Debt settlement is also a decision but along with monthly fees, it can cost you more than bankruptcy (if not mentioning the reputation of your credit account).

Still, all situations differ and they are individual. It’s impossible to say which one is better. Both bankruptcy vs. debt settlement pros and cons can be suitable for your situation but you still need a consultation. A qualified attorney should take into account all factors that can influence the decision. Only after professional consultation, you can choose one variant.

Still, more and more Americans are choosing debt settlement considering them to be less harmful to credit score and credit report.

consolidate debts