Latitude Debt Settlement Services
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How Does Debt Settlement Compare to Bankruptcy?
Both Chapter 7 and Chapter 13 will represent a major negative mark on your credit rating. In Chapter 7 bankruptcy it will stay on your report for 10 years and chapter 13 bankruptcy stays on your report during the time you are in the bankruptcy program plus a specified time calculated from the date you complete the program.
Filing for bankruptcy has many negative ramifications, and is used as a last resort. Bankruptcy may seem to be the quickest solution to removing your debt but it will remain on your credit for 10 years.
 
• Bankruptcy can cost up to $2,500 to file plus additional attorney's fees. Additionally in Chapter 13 there is a 5% trustee fee for the administration of your chapter 13 bankruptcy.
• Chapter 13 bankruptcy the court decides what you can pay and what your budget is.
• Bankruptcy may affect your ability to get a job if you work in security or financial services or have duties involving financial information.
• Bankruptcy will likely result in higher interest rates on future loans and credit.
• Bankruptcy carries a negative stigma, mental stress, and other burdens.
• Chapter 7 bankruptcy is more difficult to qualify for since the change in laws in 2005.
• Filing for Chapter 7 bankruptcy does not mean you will qualify for Chapter 7. If you fail to qualify, you will be referred to Chapter 13 bankruptcy.
• If you do qualify for Chapter 7 bankruptcy, however, your debts may be completely discharged.
• Chapter 13 bankruptcy usually requires the payback of all of your debt according to your ability to pay as determined by the bankruptcy court.
 

Besides being a devastating hit to your credit, bankruptcy can also potentially affect current and future employment opportunities for financial and security related jobs. Additionally, Home lenders are now asking on loan applications, "Have you ever filed for bankruptcy?" Even if the bankruptcy has fallen off your credit report, answering "No" is considered a federal offense if you have ever filed for bankruptcy.

Thus bankruptcy will follow you for the rest of your life. Bankruptcy is a permanent decision that is usually considered as the last resort to solving your debt matters. If you decide to file for bankruptcy, first seek the advice of a licensed attorney.

If you have enough discretionary income and wish to work on resolving your debt over time, our Debt Settlement Program may be a better alternative.