Which Is Better, Debt Settlement Or Chapter 7 Bankruptcy?

Monday, Sep 30, 13

I’ve been asked this so many times, and the answer is always 100% the same, it depends. I understand this isn’t the answer you’re looking for so I will elaborate so you can decide what may work best for you.

First and foremost, both these types of programs should only be used if you can’t afford your bills. Stop reading this if you’re looking for a way to get out of debts you can afford. If you’re having financial struggles, read on and educate yourself.

I’m not an Attorney and cannot give legal advice. Please consult an Attorney for specific questions. If you qualify for a Chapter 7 Bankruptcy, in most cases your unsecured debts will be discharged, you would no longer owe the discharged debts. A Chapter 7 will stay on your credit report for ten years from the filing date and all the accounts discharged in the Bankruptcy should report as such on your credit report. To find an Attorney, you can search the National Association of Consumer Bankruptcy Attorneys. As always, ask questions and make sure you understand everything before taking action.

With Debt Settlement, you avoid Bankruptcy, and you get in a plan to settle your debts. In most cases, your debts will get settled for a percentage of what is owed. Typically you set up a payment plan ranging from 12 – 48 months and these funds are used to settle your debts. Debt Settlement doesn’t consolidate your debts or give you a loan. The Debt Settlement payment plan would be an estimated amount needed to settle all your debts over a certain time frame. The best Debt Settlement Companies quote payment plans based on their previous success rates. Be very careful if you decide to enter Debt Settlement. Make sure you do your homework and at all costs avoid any companies that charge fees in advance.

As you can see, both programs will help you eliminate debt. Research the benefits of each and decide what works best for you.

For more information or a free quote on Debt Settlement, fill out this form and a representative from Cure My Score will contact you.

About the Author

Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at and founder of where he works as an Expert Credit Witness in both Federal and State Court. With working in the credit and mortgage fields since 1991, he’s dedicated to sharing his knowledge to educate consumers.

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