Debt settlement avoids one problem bankruptcy creates

When you are deciding between debt settlement and a bankruptcy, you must know what some of the consequences of a bankruptcy filing can be. If you are considering filing bankruptcy, you should first research the US Bankruptcy code. This can be done using internet resources, by talking with a lawyer who specializes in bankruptcies, or working with a credit counseling agency. There are several types of bankruptcy and vary in their rules and regulations. But, the reporting to the credit rating agencies that makes the biggest difference. If you declare a bankruptcy, that fact will stay on your credit report for ten years. Bad debts stay on your credit report for seven years. One disadvantage of a bankruptcy, then, over debt settlement, is that the bankruptcy will follow you for a much longer time.