Trapped in debt—bankruptcy or settlement? In 2025, with updated laws and economic shifts, choosing wrong could prolong pain. Compare pros/cons, backed by expert insights, to pick the path to true freedom without regrets.
Bankruptcy discharges debts via court; settlement negotiates reductions.
Settlement pros: No asset loss, shorter credit impact (7 years vs. 10).
Cons: Tax on forgiven amounts, no guarantees.
Bankruptcy pros: Erases most debts quickly, stops collections.
Cons: Asset surrender, long credit hit.
Georgiou Law prefers settlement for many, using Mr. Georgiou’s expertise.
Pros/Cons Breakdown:
- Settlement Pros: Flexible, private, faster resolution.
- Cons: Credit dip, potential suits.
Bankruptcy Pros: Comprehensive relief, automatic stay.
- Cons: Public, fees.
Choosing: Settlement if debts unsecured; bankruptcy for overwhelming amounts.
Tips:
- Assess assets.
- Consult pros.
Georgiou Law guides choices.
Free consult: (917) 764-3072.
