You’re struggling to make your payments. The amount you owe keeps piling up. You feel like no matter what you do, you can’t make any progress on your debt. After a while, you despair over the sacrifices you’ll need to make in order to stay afloat.
Is bankruptcy the only option, or is there another way to ease the burden?
Whether debt was accumulated as a result of job loss, medical issues, or simply overspending, it’s something that can be really overwhelming to deal with. Bankruptcy is often seen as an option of last resort, particularly because of its long-term negative impact on your creditworthiness, but in some cases, it may be the right choice.
However, each person’s situation is unique, and sometimes another debt relief option may be just what you need in order to gain solid financial footing. People often wonder whether debt resolution or bankruptcy is more advantageous. The answer really depends on your circumstances. There are some important distinctions between the two debt relief options that you should be aware of as you evaluate your options.
First, you need to familiarize yourself with the various types of bankruptcy, the two primary ones being Chapter 13 and Chapter 7. Both types of bankruptcy will damage your credit and can stay on your report for up to 10 years. It may also hinder your ability to get a job, credit, or even a place to live! The decision to file for bankruptcy should not be taken lightly, as it may be one of the biggest financial decisions you’ll ever make.
The other method, debt resolution, can also be helpful for consumers struggling with high debt loads ($10,000+). If you work with a reputable debt resolution company, they will try to negotiate with your creditors to accept payment of a percentage of your unsecured debt in exchange for settling the entire debt.
Compared to other debt relief options, such as debt consolidation and credit counseling, debt resolution may be a cheaper and quicker method for resolving debt. However, you should know that, depending on your credit profile, your credit score may be negatively impacted. Debt resolution could be a good alternative to bankruptcy for those who qualify, but speak with a certified professional to review your options before selecting the method that’s right for you.
Regardless of whether you choose bankruptcy or a different debt relief option, make sure you weigh out the pros and cons carefully before making the decision that’s right for you. If you need help, Freedom Debt Relief can go over your debt relief options and provide you with a free personalized consultation.
Give our experts a call today at 1(800) 544-7211.
All the Best,
The Freedom Family