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Bankruptcy vs. Other Debt-Relief Options

Bankruptcy has helped millions get out of debt but before you commit to a debt-relief plan, get the facts. A quick or uneducated decision can cause more problems at a time when you are trying to eliminate them.

Use the following chart to examine your debt-relief options, but please remember that this chart is just for informational purposes only and is not legal advice. Depending on your circumstances, one path may be better for you than another. Remember: There are no one-size fits-all debt relief programs.

Debt relief options

Can filing bankruptcy help?

Can debt settlement help

Can credit counseling help

Protect protect against :

Foreclosure

Yes

No

No

Repossession

Yes

No

No

Lawsuits

Yes

No

No

Wage Garnishment

Yes

No

No

eEliminate or reduce:

Accounts Referred to Collections

Yes

Maybe

No

Credit Card Debt

Yes

Yes

Yes

Medical Bills

Yes

Yes

Yes

Utility Bills

Yes

Yes

No

Payday Loans

Yes

Yes

No

Tax Debt

*Maybe

No

No

Divorce-Related Debt

*Maybe

No

No

Student Loans

*Maybe

No

No

When Does the
Relief Begin?

In most cases, you STOP paying bills immediately after case is filed. Collection efforts (creditor calls, foreclosure and repossession) are court-ordered to STOP

Typically have to make many monthly payments, including interest & late fees

Typically have to make many monthly payments, including interest & late fees

Can it Impact Your Credit?

Yes

Yes

Yes

* Discharged in bankruptcy under unique circumstances.
Talk to a bankruptcy lawyer today about your options.

 
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