FreeDebtSettlementAdvice.com today distributed a press release title “Why Bankruptcy Should Always Be The Last Option For Debt Relief” that appears, in my opinion, to sell consumers into debt settlement services through blatant misinformation. Disgusting.
Obviously from the title the intent of the release is to try to encourage people away from bankruptcy. But here is what the release says:
Bankruptcy should always be considered a last resort for securing debt relief, though it can also sometimes be the only solution especially when a creditor files a lawsuit or debt is too outstanding to settle. Through Chapter 7 bankruptcy, debt is completely wiped out, while with Chapter 13, debtors are still required to put their income toward debt repayment. After an individual files a bankruptcy claim, creditors can no longer foreclose on his or her home or garnish wages to collect payment.
Bankruptcy has the potential to offer debtors a clean slate, with one exception. A bankruptcy filing will remain on an individuals credit history for ten years, and can affect future employment and the ability to get credit to buy a car, house etc., even decades later. Though for some bankruptcy is the best option to rebuild finances, it should not be considered before other debt relief options because of the serious enduring effects on one’s credit. All debt options take time and commitment. But the most important thing to keep in mind when getting out of debt is minimizing the impact on one’s long-term credit as much as possible. – Source
But here are the real facts readers need to know.
- Bankruptcy should never be considered last as a way to deal with debt. Bankruptcy is a legal process that can eliminate unmanageable debt for most within months. Bankruptcy will also make collection calls stop, block lawsuits, and kill any wage garnishments. Debt settlement can’t offer any of those benefits.
- The effects of bankruptcy will remain on the consumer credit report for ten years if a consumer discharges their debt in a few months with a Chapter 7 bankruptcy. Immediately after the bankruptcy discharge the consumer can begin to rebuild their credit report following this easy process.
- A Chapter 13 bankruptcy, which has payments the consumer can afford and provides consumers with legal protection will only appear on the consumer credit report for seven years.
- The negative effects of debt settlement and the delinquent debt from debt settlement will remain on the consumer credit report for seven years.
- Bankruptcy makes it more likely that people with financial problems will be able to get security clearances and jobs since people in long-term debt settlement programs show a history of bad debts and delinquent accounts that have not been addressed.
- If as the press release says, “But the most important thing to keep in mind when getting out of debt is minimizing the impact on one’s long-term credit as much as possible.” then debt settlement should be the last option to consider, not bankruptcy.
FreeDebtSettlementAdvice.com Appears to Misinform Consumers to Sell Debt Settlement Services by Steve Rhode
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