Here’s what you need to know to make the best decision based on your circumstances.
Bankruptcy is a legal process that enables individuals to eliminate most (if not all) of their outstanding debts. It is a drastic solution and has a long-term impact on your credit score and financial stability.
The two most commonly filed types of bankruptcy are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy eliminates most unsecured debt, including credit card and medical bills.
Chapter 13 bankruptcy allows you to keep your assets, but you are required to pay back some or all of your debts over three to five years. It’s critical to consult a bankruptcy attorney to determine which type is right for your situation.
Debt settlement is a process where you negotiate with your creditors to pay less than the outstanding balance to settle your debt. This approach can be less drastic than bankruptcy, but it still has a significant impact on your credit score and financial stability. However, not everyone qualifies for debt settlement, and some creditors may not agree to settle.
Bankruptcy and debt settlement are two approaches that can help you get back on track with
your finances.
Ultimately, the decision to choose between these two comes down to your specific financial situation, your goals, and what you think is best for you in the long run. Speaking with a qualified attorney or financial advisor is essential when deciding on the most appropriate debt relief option for your unique circumstances. Remember, the goal is to eliminate debt, rebuild your credit, and improve your overall financial well-being.
For more information or to schedule a consultation to discuss whether or not bankruptcy is right for you, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.
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