Advertiser Disclosure

Comparing Debt Solutions And Bankruptcy

Comparing Debt Solutions And Bankruptcy Debt

Debt solutions are bankruptcy are two totally different options. Although both debt solutions and bankruptcy can reduce your debt, they differ in respect to cost, time and the amount of debt that you can eliminate. In case you are in a place wherein you are required to choose between the two, you will first need to understand how each one works before you can make the choice.

Understanding Debt Solutions: It is a method wherein you reduce the amount of debt that you need to pay your creditors. When you stop making payments to your creditors, you will need to contact a Debt Solution Company and send them money each month which they will in turn put in a savings account. After a certain amount of time, they take a chunk of your money and approach your creditors on your behalf looking to settle your debts. The Debt solution companies do the negotiation for you and try and get your creditors to settle your debt for a fraction of what you own. As you can always file for bankruptcy, your creditors will also be eager to negotiate a deal.

Understanding Bankruptcy: There are several types of bankruptcy, the easiest of them being personal bankruptcy where you complete the required paperwork and file it with your nearest bankruptcy court. Within a few months of you filing for personal bankruptcy, your unsecured debts will be totally wiped out. In order to qualify to file for bankruptcy, you should not make too much money. This is verified and you pass the test if your income is less than the amount set by the state for a household of your size. Another way that you can qualify for personal bankruptcy is when you don’t have enough disposable income after your expenses are taken care of. But then like everything else the catch that comes with bankruptcy is that you must give up your property.

Both Debt solutions and bankruptcy are different emotional experiences for people.

1289 VIEWS

top rated cards

Citi® Double Cash Card – 18 month BT offer

cards
  • Purchases Intro APR
    15.24%
  • Regular APR
    15.24% - 25.24%
  • Balance Transfer Int APR
    0%
  • Annual Fee
    $0

Citi ThankYou® Preferred Card

cards
  • Purchases Intro APR
    15.24%
  • Regular APR
    15.24% - 25.24%
  • Balance Transfer Int APR
    0%
  • Annual Fee
    $0

Citi Simplicity® Card - No Late Fees Ever

cards
  • Purchases Intro APR
    15.74%
  • Regular APR
    15.74% - 25.74%
  • Balance Transfer Int APR
    0%
  • Annual Fee
    $0

Citi® Diamond Preferred® Card – 21 Month Balance Transfer Offer

cards
  • Purchases Intro APR
    14.74%
  • Regular APR
    14.74% - 24.74%
  • Balance Transfer Int APR
    0%
  • Annual Fee
    $0
Finance

What Should Be Included In A Promissory Note

A promissory note is a legally binding document attesting a relationship between a lender and a borrower. It works as a promise to pay the loan amount as well as the interest within a specific period of time. A promissory note must answer six most im...
1050 VIEWS
Finance

How Do Term Life Insurance Policies Work

When you are skeptical or undecided about investing in a term life insurance policy, understand what it entails and list out its advantages to help you make a wise decision. For a term life insurance to be profitable, the insured person must be de...
1326 VIEWS
Finance

Things You Need to Know About Permanent Whole Life Insurance

Permanent whole life insurance is a type of insurance that provides a very low-cost protection of term life insurance (life insurance that does not expire) and a death benefit with a savings portion. The insurance component, as expected, pays a fixed...
1198 VIEWS