First, let's consider what happens when someone files for bankruptcy. If the consumer chooses to file for chapter 7 bankruptcy, all eligible debts that are included in the filing are eliminated; the key word here is "eligible" debts, because some debts cannot be included into a bankruptcy filing. Debts that will remain include things like student loans. During a chapter 7 filing, the consumer's main assets are often at risk and the individual can lose their house, their car, and other costly items so that some of the monies from sold assets can be used to pay off debtors. Meanwhile, a chapter 13 filing allows the consumer to keep his or her assets, but it does not protect the consumer's credit score. Any kind of bankruptcy filing results in seven to ten years of damage on one's score.
Debt Relief Solutions include a number of different options. You might consider entering into debt relief counseling where you are offered guidance about how to create a budget, how to pay off debts, and how to prevent debt accumulation in the future. You can also consider debt relief solutions involving debt consolidation measures; this will involve getting a loan of some kind so that all of your existing debts can be paid with immediacy. What remains in the latter situation is the new loan, often associated with better interest rates and lower monthly payments. Meanwhile, there are companies that offer consumers debt settlement services: such services involve negotiating debts with creditors so that the debtor pays an agreed to amount. The latter services help to diminish overall debt, to establish a payment plan, and the debtor eventually gets out of debt over an extended period of time.
Debt relief solutions, when compared to bankruptcy filings are clearly the better option when seeking to get out of debt. When seeking out debt relief options one will find that it may take some time to get out of debt, but the long-term damage to one's credit is minimal. In addition, there is no threat to one's assets when seeking out quality debt resolution services.