What is the difference between debt resolution and bankruptcy?

Debt resolution is settling a debt with a creditor for less than is owed on the debt. Bankruptcy means filing papers in court stating that you are bankrupt, and asking the court to either discharge your debts or to reorganize the debts into more manageable payments.

Debt resolution is a good option for some people. Normally, you will have to have a sufficient monthly income, or you may be asked to make a lump sum payment to settle the account. That may mean that you have to stop all payments on accounts and save money until you have enough to make a settlement offer. This could damage your credit and cause you to be sued in court by creditors.

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