Bankruptcy is one the most common ways for people to make their way out of huge loans or unmanageable debts. According to the reported statistics, there were 544,463 filings in 2020 alone. Most of these people file for bankruptcy because they have outstanding debts. However, bankruptcy is often not the only option. Each case is unique. Therefore, you may have more than one option.
What Is Debt Settlement and How Does It Work?
The debt settlement is an informal process in which creditors and debtors negotiate a loan amount. It may be a good way to reduce your debt without going through all the legal hurdles of bankruptcy or litigation. Many debt collectors and creditors would consider coming to mutual agreements with the debtors when debtors are represented by a knowledgeable attorney.
Is Debt Settlement Worth It?
Let us look at some of the scenarios where debt settlement is worth it for you.
Bankruptcy filing ineligibility
If you are ineligible to file bankruptcy because of a recent filing or any other reason; then, going for a debt settlement could be the best option for you.
A large Number Of Assets
If you have many assets, then debt settlement may be a good option for you. You may end up losing some of your assets in bankruptcy, and choosing a debt settlement instead could be a way to avoid that. In any case, requesting an initial free consultation from a knowledgeable Las Vegas bankruptcy and debt defense attorney may be the best starting point for you.
People may have personal reasons not to file for bankruptcy. In this case, debt settlement could be your next best alternative.
What is Better?
It all comes down to that one simple question. Is debt settlement better than bankruptcy in Las Vegas?
Well, there is no black and white answer. It all depends on your personal experience and situation, as we explained in the article above. If you feel like filing for bankruptcy is a better approach to this problem, then you should go for it; however, we will always suggest considering debt settlement too before you make a final decision.
How to Act Now?
If you have finally decided to do something about your financial situation, you need to start preparing and acting promptly. The more you wait, the harder it will be for you to deal with the creditors. Start this process by speaking with an experienced Las Vegas attorney for free today.
About Freedom Law Firm.
Freedom Law Firm is the most trusted bankruptcy law firm in Las Vegas, NV. We’ve helped thousands of people eliminate or reduce their debt, save their homes, stop abusive creditors, and move on with their lives. Visit www.freedomlegalteam.com or call us at 702-479-5405 for a free and confidential consultation.
Sources: https://www.wslaw.com/bankruptcy-law/debt-settlement/ https://www.uscourts.gov/news/2021/01/28/annual-bankruptcy-filings-fall-297-percent https://www.rhmfirm.com/bankruptcy-overview/debt-settlement-vs-bankruptcy/