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Avoiding Bankruptcy with Debt Settlement


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Debt settlement is very similar to Consumer Proposal in Canada. Debt Settlement or Debt Negotiation is a very cost effective way to pay off your debt without having the credit crushing bankruptcy on your credit report. You can hire a service to help you contact the creditors and they will negotiate a settlement for you. Creditors want to get as much money back as they can and when a customer goes through bankruptcy sometimes they do not get the amount they should. They are willing to help the debt because in the long run it helps them.

A debt settlement service will contact the creditors and will work on a settlement that you can afford. The main issue a creditor may have with a debtor is the fact that they require their settlements to be paid on time every month. This must be something that you as a debtor can guarantee. Some creditors will allow the settlement with the condition that if the debtor is late a certain number of times they may rescind the settlement. Make sure the service you choose does not allow that to happen and you must do your best to make those payments on time.

Debt settlement services will sit down with you and go over all of your bills and then they will advise you to terminate your accounts with the creditors. If you choose to keep a card then do not present it for debt settlement. A creditor most likely will insist that the account be closed so what ever you don’t want to close then keep out of the settlements.

Debt settlement companies can settle credit card debt, unsecured loans, unsecured personal loans, unsecured personal line so credit, collections, and car repossessions and medical bills. They cannot settle lawsuits, IRS Debt/Taxes, utility bills, auto loans, government loans, student loans, secured debts and home loans and or mortgages.

Do not feel you have go with the first service you speak to, see if you can get a better rate with other services. Then choose a service whose rates work for you. Some services can guarantee a 40 to 60 percent reduction in your debt; this would allow you to get rid of your debt in as little as 3 years. By choosing this service you are avoid bankruptcy and that will be a great thing in the long run. It looks better to potential creditors that you had a big debt and paid it rather than claim bankruptcy which stays on your credit report for 10 years.

Call around and start making appointments with debt settlement counselors. They will provide you with a settlement plan and after you have seen maybe 2 or 3 debt settlement counselors choose the plan that is right for you and begin making payments as soon as they allow. This is something you don’t want to sit on, if you know you are in trouble don’t wait until it is too late, and do something today.

Oral Nicholson wants to show you how to avoid bankruptcy and will show you proven techniques and statergies to get you out of debt without bankruptcy. For bankruptcy information visit


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