Chapter 13 vs Debt Settlements; a Re-Match
What is a Debt Settlement?
A Debt Settlement is a non-judicial process whereby you or your representative contact your creditors and ask them to take a settlement.
Chapter 13 bankruptcy is a court process to reorganize your debts over a 3 to 5 year plan of repayment.
In the rest of this post, I will assume that you do owe a lot of money and that you do not qualify for a chapter 7 straight bankruptcy.
Round 1: Chapter 13 Can Also Cut Your Balances
With a chapter 13 you might not even have to pay all your credit cards in full in the first place. You might be able to cut your balances by more than the settlements.