which is a better choice? Delaring Bankrutcy or debt settlement where they pay so much on the dollar?

Question

I know either will not look good but is it better to start fresh or show that you are will to pay off your debt even though you had to settle on it? I need an answer please I do not know which way to go but I do have to do one or the other immdiately.
Thank you

Answer 1

Settlement is a far better option. Think about it, if someone owed YOU $1000, and they came to you and said they were having financial trouble, but would be able to give you, say, $400 as payment in full, wouldn't that make you less angry than if they filed bankruptcy and you got $0? Theoretically, bankruptcies are "discharged" after a certain time period, but do you think you'd be happier 7 years later if you'd got 40 cents on the dollar or nothing?

Answer 2

By settling does this mean one big payment or structured payments? I ask because what you have now will stay (even if settled) on your credit report for 7 years, if you settle with payments then miss one later on it will be seven years from the date of your new missed payment. Bankruptcy will remain on you record for 10 years. Is it one bill or a bunch of ones you are settling to? How many years are they behind? To many unanswered questions to make a good judgement here

Answer 3

Well I am sort of going through the same issue and I was asking the same question. It really all depends on how much debt you have and how much income you have coming in. You do have the option of consolidating your debt if you don't have that much and you can afford another bill every month for about three years or if you have to much debt and you can't afford to consolidate then save up your money and file bankruptcy.

I am trying to see if I can afford another bill with consolidating my debt if not then I am filing bankrutpcy.

Answer 4

Bankruptcy no doubt,settlement of accounts will still show up in your credit report as negative,and you will not be able to get a credit for 7 years.My wife went through bankruptcy 6 month ago,even though that remains on your report for 10 years, last week she got a credit card from Washington mutual with 3000.00 limit.Her bankruptcy costed us $ 1300.00,but she was granted the motion,and saved her azz $53000.00