In this video I provide 4 reasons why Bankruptcy is better than a debt settlement hands down.

#1) A bankruptcy provides you a clean slate, where as a debt settlement you still have the debt if they do not settle the debt with you.

#2) Debt Settlements require the creditor to take less then what is owed. In addition the amount that was not paid for will lead to a taxable event in which they will send you a 1099 for the difference.

#3) In a Bankruptcy chapter 7 one time payment to the attorney and you don’t have a 1099 to deal with for taxes. Where as a debt settlement there is the possibility the debt(s) could resurface. A Bankruptcy provides a clean slate and the worry of it resurfacing is eliminated.

#4 Bankruptcy provides a legal guarantee all debts are taken care of. Where as a debt settlement they can sell the debt to another creditor allowing them to try to come after you financially.