Debt Settlement VS Bankruptcy: Which is Best?

Attorney David Shuster | 888-365-0921 | Free Consult

“It’s something that’s free, it’s easy, it doesn’t take long. Get on the phone and you’ll find out your options when you talk to an attorney.”

If you’re feeling overwhelmed by debt, what are your options? What are the advantages of debt settlement over filing for bankruptcy? How does the COVID-19 pandemic affect these types of financial decisions? Between debt settlement vs bankruptcy, which option is the best?

David Shuster is a debt relief attorney with Shuster Law, PLLC in the Dallas—Fort Worth area. He says that if you’re feeling overwhelmed by debt, you should contact his office for a free phone call. Everyone’s financial situation is different, so there is no one-size-fits-all approach to solving financial problems during the coronavirus.

To learn more, contact the attorney directly by calling 888-365-0921 or by submitting a contact form on this page. There is no charge for the consultation.

Key Takeaways From David Shuster:

If you have available credit that can be used to take care of yourself and your family during the COVID-19 crisis, Shuster recommends taking advantage of that credit and using it as needed. He maintains that inevitably the economy will recover, and when it does people will be getting back on their feet, paying off their debt, and figuring how to repair the damage to their financial situation caused by the coronavirus pandemic.

If you are in severe debt and considering bankruptcy, talk to a lawyer.

If you are currently struggling to make the minimum payments on your debt with your current income, or can predict that even with consistent payments you still won’t have paid off your debt even several years down the road, it’s probably time to consider filing for bankruptcy.

Shuster recommends seeking legal counsel if you have reached this point in your financial situation. A bankruptcy attorney can help you evaluate your case, decide what steps are necessary to rectify it, and walk you through the process of filing for bankruptcy if you decide you want to, as well as discuss with you the potential ramifications to your credit score and how long those ramifications will last after bankruptcy.

Debt settlement VS bankruptcy: How do they compare?

If you qualify for a Chapter 7 bankruptcy, your debt can be wiped out without losing your property; this type of bankruptcy is often referred to as a “fresh start” bankruptcy. If you qualify for a Chapter 7 or fresh start bankruptcy, Shuster advises against pursuing debt settlement or Chapter 13 bankruptcy. Debt settlement and Chapter 13 bankruptcy involve you continuing to pay your creditors, whereas a Chapter 7 bankruptcy involves a partial or total forgiveness of your debts.

If you do not qualify for a Chapter 7 bankruptcy, pursuing debt settlement might present more benefits for your situation than filing for a Chapter 13 bankruptcy. This is where it is especially helpful to seek legal counsel from an experienced bankruptcy attorney regarding what you should file for in your situation.

Shuster and others are offering remote communication options for potential clients seeking legal representation during the pandemic.

Law firms have remained open during the COVID-19 pandemic thanks to the flexibility offered by channels of remote communication. Phone calls, video conferencing, and emails are just a few of the ways that lawyers are staying in contact with their clients and answering their questions while maintaining proper social distancing. Documents can even be signed electronically or sent through the mail; for the most part, an attorney can provide you with the same support and service they would have before the shelter-in-place orders went into effect. Court hearings going forward are being conducted through video and teleconferencing means, and are likely to continue to be done in this manner in the foreseeable future.

The consultation is free.

Many bankruptcy attorneys offer free consultations, so it’s a good idea to take advantage of the opportunity to request one and learn more about your options from an expert you can trust. In fact, bringing an attorney on to handle your case can actually result in big savings rather than a loss of more of your money.

To learn more, contact David Shuster directly by calling 888-365-0921 or by submitting a contact form on this page. There is no charge for the consultation.

Disclaimer: This video is for informational purposes only. In some states, this video may be deemed Attorney Advertising. The choice of lawyer is an important decision that should not be based solely on advertisements.