We all know what bankruptcy is, and a number of companies and firms deal in debt settlement plan to avoid using the bankruptcy chapters. Though people, in fear of getting into bankruptcy procedure, use the settlement plans, they do not know what exactly they are.
Debt settlements and declaring bankruptcy are two common methods of dealing with lack of credit in your bank account. Basically debt settlement means hiring a debt settlement company to negotiate with the creditors the pending debt amount and reach a settlement which is much lower than the initially agreed percentage.