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The debt gives the mental pressure to all the debtors.
I am assuming that you do not have money to repay your debt.
The debt can still be removed without paying back the debt.
You still have two options to clear your debt that are settlement or filing bankruptcy.
Debt settlement vs.
filing bankruptcy I will explain in the next paragraph.
This will help you in making the right decision.
The bankruptcy is a problem not the solution.
You may feel that bankruptcy as a solution but you will get lot of the problems in the process of bankruptcy and after it.
The bankruptcy needs lot of money.
You have to pay the court and the attorney fees.
This fee is not dependent on the outcome of the case.
In the settlement process you do not have to pay to anybody.
This process only involves two parties you and your creditor where as in bankruptcy the parties involved are creditor, court and you.
The process of bankruptcy is a complex process when compared to the debt settlement.
In case of bankruptcy the outcome is dependent on the court whereas in debt settlement you will surely get some debt amount reduced.
The amount of reduction depends on your negotiation skills.
In both the cases your credit score will get affected but in case of the bankruptcy credit report is destroyed.
The affect on the credit score in case of the debt settlement will not be much.
You will not be able to get the loan in future after bankruptcy this is not the case for debt settlement.
The settlement will help you in clearing your debt without much of associated drawbacks.
It is advisable to consider the debt settlement over the bankruptcy for clearing the debts.
The hiring debt relief firm for the settlement is good practice.
They will get you at least 60% of your debt as debt reduction.
You can pay them for the reduced debt amount.
In case of the bankruptcy you have to compulsory pay the attorney's and court's fees.
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