Bankruptcy and Debt Settlement

If you are like millions of Americans you have accumulated a lot of debt and trying to figure out the best way out.  You are not alone. Many people in struggle to choose between bankruptcy and debt settlement. Both promise relief, but they work very differently. Only one of them truly protects you from lawsuits, wage garnishments, and years of damaged credit.

Debt settlement usually involves hiring a company to negotiate with your creditors for a lower lump sum payoff.

• You make monthly payments to the debt settlement company for years.
• They save up that money until they can offer a lump sum your creditors.
• During that time, your debts typically remain unpaid and in collections.
• Your credit score continues to drop.
• There are tax consequences of debt settlement where you can owe more to the IRS
• Worst of all, creditors can still sue you, garnish your wages, or send debt collectors after you even while you’re making payments.

In short: you’re paying faithfully, but there’s no guarantee you won’t get sued, and there’s no legal protection during the process.

Bankruptcy is a legal process, not a negotiation. When you file, the court gives you immediate protection through something called the automatic stay. This stops all collections, lawsuits, garnishments, and creditor harassment immediately.

Some benefits of bankruptcy include:

• Immediate protection from lawsuits and garnishments
• There are no tax consequences for discharged debt
• Most clients see their credit score rise by 30–60 points within one day
• You can often get a car loan in one week and a credit card in one month
• Many people qualify for a mortgage in just two years
• Your credit score can rebuild to around 720 relatively quickly
• It doesn’t stop you from applying for government programs or getting a job

And contrary to what you might have heard, bankruptcy is not the end of your financial life it is the beginning of a fresh start.

For most people, bankruptcy offers more protection, faster results, and long-term savings compared to debt settlement. It’s a legal solution with powerful benefits and not a gamble with your future.

We offer free consultations with a bankruptcy attorney and convenient payment plans. No pressure, just honest answers to your questions and concerns.  Visit our website

Call us today for real and honest answers