Bankruptcy vs. Debt Settlement in Oklahoma
Is Debt Settlement Worth It?
Debt settlement is not worth it. Bankruptcy is the superior choice. Debt Settlement companies charge substantially more than the cost of a Bankruptcy and can take years to settle only a portion of your debts.
Reasons to choose bankruptcy:
- Bankruptcy costs less and wipes out debt completely in 90 days.
- Many people who enter debt settlement programs wind up being sued anyway, forcing them into bankruptcy after having wasted a lot of money needlessly.
- You must pay tax on any debt forgiven by settlement. You pay no tax on any debt discharged in Bankruptcy.
- Debt settlement does not help your credit score at all.
Debt Settlement Agents vs. Bankruptcy Lawyers
Debt settlement agents are not licensed attorneys. Although they frequently advertise "legal services", they are unlicensed, have taken no oath, and owe you no duty of competence. People in debt settlement programs usually get sued eventually. When they do, the debt settlement company advises them to find a competent bankruptcy attorney.