Debt settlement and bankruptcy are solutions to the same problem—they both help you get out of debt. However, the two options are very different.
Debt settlement is like a negotiation. If you are having trouble paying off your debt, you may enter into a debt settlement agreement with your creditors. This process does not require a formal court filing and can often be handled without a lawyer or financial counseling. In a debt settlement agreement, you meet with your creditors to create a plan for how you will pay off the debt. Debt settlement generally applies to individuals with low to moderate levels of debt.
Bankruptcy is a legal proceeding through which people or businesses who cannot repay debts to creditors seek relief through the court. Unlike a debt settlement, bankruptcy does require a formal court filing. While you do not need a lawyer to file for bankruptcy, having an Okeechobee bankruptcy attorney on your side will improve the outcome, speed up the process, and remove stress from the situation.
In general, there are two types of bankruptcy: Chapter 7 and Chapter 13. If you are facing a significant amount of debt, an experienced Okeechobee bankruptcy attorney will be able to help you decide which chapter is right for you.