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There are advantages and disadvantages to both debt settlement and bankruptcy depending on each individuals set of circumstances. A bankruptcy lawyer that only focuses on debt relief for families is in all probability the best person to look up if you are struggling financially or trying to stop foreclosure of your property. A bankruptcy lawyer can run a “means test” and determine if you qualify for chapter 7 or chapter 13 based on your income, dependants and mortgage payments. If you are eligible for a chapter 7 you might be in a better position filing bankruptcy rather than debt settlement. Bankruptcy chapter 7 might allow you to completely eliminate all your unsecured debt and keep your cars and your home, while chapter 13 would be a repayment plan of typically pennies on the dollar. It’s important to consult a bankruptcy lawyer that has experience with both chapter 13 and chapter 7, as well as debt settlement. Most bankruptcy attorneys only file bankruptcy and don’t particularize in debt settlement so they are more likely to navigate you to bankruptcy chapter 7 or chapter 13. Filing bankruptcy rather than debt settlement for somebody with a minimum amount of credit card debt may or may not be a wise option based on several factors. Consulting a bankruptcy lawyer that has the ability to file bankruptcy as well as debt settlement will present to you your best options and help you decide to either file bankruptcy or go into a debt settlement program. Most debt settlement companies tell you what you want to hear and don’t decently disclose the under belly of debt settlement or the benefits of chapter 7 bankruptcy. When you file bankruptcy chapter 7 you can wipe clean all your debt completely and avert judgments and liens. If you opt to enroll in a debt settlement program instead of opting to file bankruptcy you should be sure to utilize a bankruptcy lawyer for the best results. A bankruptcy specialty firm can typically guard you from your creditors, who are less likely to sue you if they are aware thatyou will file bankruptcy and they will recieve zilch. In a debt settlement program you will likely pay fifty percent of what you are indebted to your creditors rather than 3 percent to 10 percent in a chapter 13. If you pass the means test, you can opt to file chapter 7 bankruptcy and usually pay nothing other than your fee for filing bankruptcy and your bankruptcy attorney fee.

One problem with debt settlement companies is that they likely take their fee for the debt settlement before the work starts and make no guarantees. A bankruptcy lawyer providing debt settlement is a much more secure path and are held to a more rigid standard than a debt settlement company. Also, a bankruptcy lawyer can offer you legal representation and creditor defense from harassing creditors. While filing bankruptcy may be the last hope for most, the truth is that bankruptcy is an easier option than people may think. If you would like more bankruptcy information or would like to see if debt settlement is a more prudent plan of action, the bankruptcy attorneys at Zhou & Chini offer free consultations. To find a bankruptcy firm in California that also provides debt settlement plans click here: www.BankruptcyAttorneyinCalifornia.com.