What are the Differences Between Debt Settlement and Bankruptcy?
When you are struggling with debt, you might be considering personal bankruptcy as an option, but you also may be thinking about debt settlement. Debt settlement is often depicted as an alternative to bankruptcy that can allow struggling consumers to deal with debt without having to go through the bankruptcy process. Yet debt settlement is not always so straightforward, and bankruptcy is not nearly as devastating to your financial record or credit as you might think. Our Oak Park bankruptcy attorneys can provide you with more information about debt settlement and bankruptcy, and we can help you to find the best solution to your debt problems. Debt Reduction Versus Debt Elimination A debt settlement is a particular kind of agreement that a consumer enters into with one or more creditors in order to reduce the amount of debt the consumer owes, and to repay a smaller portion of the money borrowed. Differently, in both Chapter 7 and Chapter 13 bankruptcy, remaining eligible debt at the...