If you are deep in debt and are getting worried and looking for bankruptcy tips then I have some advice for you. Bankruptcy is getting harder to get and will damage your credit score very much. However nowadays consumer debt settlements are surpassing bankruptcy due to some new laws.
Previously it was easier to file for chapter 7. A lot of people went bankrupt. However the financial institutions were not happy with this and this was hurting the economy. Eventually a new legislation was passed which is stricter. So now it is harder to get chapter 7. What is being focused now on is chapter 13 which is debt restructuring. In it you still have to pay back your loans but the law will decide what to do with you and how to force you to pay back your dues. You will either get 3 years or 5 years to pay it back depending on your income and some other conditions.
These legislation have led to lesser bailouts. However since there are still people having problems paying back their debts and can no longer file for bankruptcy or get it they are going towards debt settlements. The reason debt settlements are surpassing bankruptcy is that they are becoming a better option that bankruptcy.
Getting a debt settlement means you will still have to pay back some part of your debt. In debt settlement what happens is that you negotiate with your creditor. You tell them that you will not be able to pay your dues. Since you filing for bankruptcy would be a complete loss for them they agree to cut it down to something more manageable for you because they want to minimize their losses. So they may agree to reduce your debt. Sometimes they may even reduce it up to 70%. It all depends on some factors such as your financial health, income and others.
The hit your credit score will get from a debt settlement will also be lower than what you would have gotten from a bankruptcy filing. And once you pay the amount due the bank will consider your account settled. For this growing need there are many companies who will help you get a debt settlement for a fee. These companies will use their expertise to get the best deal for you. There are also some good debt relief networks which keep a check on these companies and you should contact these networks if you are thinking about getting a settlement.
If you have over $10k in unsecured credit debt there is legitimate help out there. Instead of going right to a debt settlement company you might have heard on the radio or television, it would be wise to use a debt relief network. This way you can be assured that you find a legitimate company in your state. Check out the following link for a list of legitimate debt settlement services in your state: