How is California Debt Settlement Different Than Bankruptcy?
Debt Settlement also know as Debt restructuring is not Bankruptcy. With debt settlement you pay back your creditors by negotiating with them to accept less than the principal balance that they claim you owe. There are not public records when you utilize a California debt settlement company and no one knows that you have hired a someone to help with your credit card debt.
Bankruptcy involves going before the courts and having debt forgiven. Filing bankruptcy is a serious decision with serious consequences and should be considered only as a last resort, based on the advice of a qualified attorney.
Also, bankruptcy laws changed in 2005 which made it more difficult to discharge unsecured debt. Many people do not qualify for a chapter 7 bankruptcy and can only file a chapter 13 repayment plan.
Chapter 13 repayment plans can last 3-5 years and the payments are usually deducted from your paycheck. Bankruptcy is a matter of public record and can be reviewed by prospective employers though public records or uncovered with a credit report for 7-10 years.
Many people our surprised tht California Debt Settlement can help them to avoid bankruptcy with an affordable 2-4 year plan.
If you are still considering bankruptcy, call me. I can provide information to for local bankruptcy attorneys in your area who will give you a free and no obligation consultation.