To call bankruptcy a debt management plan is a very funny and ironic statement. Bankruptcy is acknowledgment of your defeat. You approach the law and seek its protection because you are not in a position to take care of your finances on your own.
You don't learn how to manage your debts just because the court has given you the freedom to escape your liabilities, do you? Instead, it is more of distress to sale of all your assets where the amount recovered is diverted to the lenders and the obligation to repay the debt is considered discharged.
What do you learn about management of debt from this entire process? Rather, you learn how to escape your obligations and how to extract a chance to start all over again. On the other hand, debt- settlement is completely different deal. For starters, you learn how to fulfill your obligations.
By getting assistance from the lenders to the extent of 50% to 60% of the total amount owed, you enjoy relief that never exist ed before. However, it is not a free ride throughout. You still have to bear the obligation of repaying the balance amount owed. If you do not make the repayment on time, the lender will obviously take legal action.
Hence, there is sufficient incentive for you to remain focused and committed throughout. On the other hand, if you go in for chapter seven bankruptcy, you will probably end up making a mess of your finances and try a chapter thirteen bankruptcy instead.
This will postpone the entire process of learning how to manage your debts properly by 5-7 years. Why do you want to put your future progress in doubt? Why don't you go in for a debt settlement deal which will teach you how to make regular repayments to bring down your 50% of the debt amount to manageable levels?
Rather than considering debt settlement as an alternative for bankruptcy, consider it as an improvement over bankruptcy. Consider it as a class where you get to learn how to make regular repayments by marshaling your resources and analyzing your finances.
If you have a professional to help you out throughout, you will find the process becomes even simpler and easier. Rather than going in for a disasters bankruptcy that has more complications and technicalities than any debt management lessons, you should go in for the settlement transaction.
If nothing else works, you would at least have brought your debts down by 50% and down to zero in a span of 12-24 months.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
Free Debt Help [http://www.freedebtreductionhelp.com].
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