What is the Difference Between Bankruptcy and Debt Negotiation?
Large debts can wear down a person’s financial freedom, often leaving him or her at the mercy of creditors. However, there are legal actions available that can help people lower their debt burdens into manageable amounts or clear out much of their debt altogether. Two of the most popular options are debt negotiation and bankruptcy.
If you’re not sure about what kind of action you should take to fix your debt problem, we may be able to help. For more information about how we can help you fight your way to financial stability, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
Comparing Advantages and Disadvantages
Although debt reduction is the ultimate goal, debt negotiation and bankruptcy are two different choices that a person may look at when facing financial difficulties. Consider the following benefits and drawbacks of both debt negotiation and bankruptcy:
- Debt negotiation isn’t as powerful as bankruptcy in discharging debts
- Debt negotiation carries fewer penalties to property or credit as bankruptcy
- Bankruptcy can provide very strong debt discharges
- Bankruptcy can result in a loss of property and credit score damages
One choice may be better than the other depending on how much an individual owes, what kind of debts he or she has taken out, and even the creditors involved.
If you have considered taking action to improve your debt situation, our legal advisors may be able to assist you regardless of the action you opt to take. To discuss what your next steps, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.