If you’re knee deep in debt, cannot pay your bills and wish to avoid collection calls, creditor harassment, collection lawsuits, garnishment and other collection activities, you may consider bankruptcy.

Some people may suggest debt settlement to you (also known as debt negotiation). With debt settlement, you negotiate and reduce the outstanding debt by 40-60% of the amount you owe. The creditor forgives the remaining debt, thereby helping you to get out of debt faster. If you end up settling for less than the original amount of the debt, there will almost always be a negative reflection on your credit score. Accounts that are delinquent stay on your credit reports for seven years, as do accounts charged off by lenders. So the million dollar question is “what credit card company is going to give you an unsecured credit card when your credit report is showing that you settled for less? You know the answer! Probably none!