Debt Resolution Methods
Because everyone has unique goals and circumstances, we know bankruptcy is not always the best option for everyone. For some, the legal requirements or statutory limits imposed under bankruptcy law may prevent them from being able to “qualify” to file bankruptcy. For others, there may be a negative “stigma” often incorrectly associated with how a bankruptcy effects credit scores or what the process of bankruptcy entails. Unfortunately, given the common misconceptions about bankruptcy, the portrayal of bankruptcy in the media, and the negative “stigma” merely associated with the word “bankruptcy”, many people hope to avoid bankruptcy all together, and only seek non-bankruptcy ways in which they can try to resolve their debts.
The two most popular non-bankruptcy debt resolution methods today are Debt Consolidation and Debt Settlement. Either Debt Consolidation or Debt Settlement can be a useful, non-bankruptcy, way to eliminate or reduce your debt and to help alleviate the stress and harassment caused by collection agents. On the surface, not only the methods but also the outcome of Debt Consolidation and Debt Settlement are very similar to those of bankruptcy. For instance, Debt Consolidation, Debt Settlement, and bankruptcy can involve the negotiation, reduction and/or repayment of debts owed to various creditors and both ideally end in the elimination of debts. Unlike bankruptcy, neither debt consolidation or debt settlement are governed by a codified system of laws. Also unlike bankruptcy, Debt Consolidation and Debt Settlement participation is entirely voluntary, which means creditors are free to accept or refuse to participate, leaving some debt resolved, and some still owed. Because filing bankruptcy and the eventual discharge of debts is binding on creditors (ie. they cannot opt out of participation), Debt Consolidation and Debt Settlement tends to offer less assurance of complete debt resolution.
We firmly believe knowledge is power, and that in order to choose the path that best suits your journey, it’s important you know more about where all paths may eventually lead. If you would like to learn more about bankruptcy, including the many misconceptions associated with it, Click Here. To learn more about Debt Consolidation or Debt Settlement, please click on the links below.