Chapter 7 Bankruptcy or Debt Settlement Negotiations? Douglas G. FarquharBankruptcy Lawyer, San Diego, Favors Filing for Bankruptcy in San Diego..for MOST People!
As a San Diego Bankruptcy Lawyer, in my experience, the following are 5 real reasons why one should seriously consider filing for bankruptcy over negotiating a debt settlement...

1) It's cheaper. Debt settlement is expensive. Debt settlement companies often charge you a fee of around $3000 which is usually a percentage of the amount of money that you save. This can amount to a lot more money depending upon the amount of debt you have.

Then you have to pay the debts themselves. Even a 25% payback of your creditors (which is very low) would amount to $5000 if you owed $20,000 in debts. The overall payback percentage could be as high as 60%. Some creditors may want to give no discounts or only minimal discounts.
So if you had $20,000 in debts you would probably be...