Debt Settlement vs Bankruptcy in 2025

So, is Debt Settlement a better option than Bankruptcy? Today, we're going to try to find out. When folks are looking at options, I find that they are most curious about the impact on their credit scores, the total cost, and monthly payments.

Here's what we cover in today's video:

00:00 Introduction
01:30 Credit Score Impact
05:22 How Debt Settlement ACTUALLY Works
11:44 Chapter 7 vs Chapter 13 Bankruptcy
14:28 Which Is Better? Debt Settlement or Bankruptcy?

License code: 0PQPYEPTYPS5ODIQ

[RobertNoppers]

For years, I felt trapped by debt, constantly juggling bills and never managing to save enough to make investing worth it. I know a lot of people have been in the same boat feeling like they’re just one step away from drowning. After a while, I finally hit a point where I had to reassess everything. I dove deep into learning about finance, and it wasn’t easy, but finding strategies that matched my specific situation really made the difference. It took time, but the changes were real. Now, I’m debt-free and close to retirement, with a $3 million goal in sight. It still amazes me that I’ve gotten so into watching financial content something I used to avoid like the plague

[PokeDaddy-bfbo]

I took debt settlement before and it will not releive of any debt plus your score will be so bad for years. The company that is managing your debt is taking a huge chunk of your monthly payment as fees from time to time, you will end up paying more than what you actually owe in the end.

[AcidDaBomb]

I work in debt settlement, I also have gone through the process, Everything you say is true, a big reason why I did it is cause I knew my biggest creditors would be fast to negotiate.

[ItsTheJourney]

Always 99.9% better to file bankruptcy, debt settlement often wrecks your credit for a much longer period of time, and as you mentioned in the video it doesn’t protect you from being sued or wage garnished like bankruptcy does. A chapter 7 will $0 out and close all of your debt (besides student loans, child support, and a few other exceptions) you’re also protected by the law from creditors. My sore jumped 200pts the day after I filed chapter 7, and score continues to climb as I’ve rebuilt.

[chewypoo]

Thank you so much for sharing you knowledge & wisdom. I've pick up some great info. I'm so glad I found your channel. I might have to file ch.7 of for the 1st time in my life. Go figure I'm bad with money and moving from mid-west to now living in S. Cali. puts me into this mess. But I created this mess now I have to clean it up. Again thank you sir for this great info. I subscribe and liked..God bless you.

[Rambat]

I’ve been reading reviews of companies taking the payments but not paying the payments out to creditors.

[richardmurry]

I got some credit cards Capital One and got behind I got Crossroads that freedom

[Prodigal]

What about settling debts with creditors yourself?

[kelvinmorris]

With debt settlement don’t you have to pay taxes on the forgiven amount?

[geoffwitt]

Great material. Are you taking calls still?

[vha]

I with ascend. Hope with time my credit score goes up. Hope to retire by 2026

[Kel.Alexis]

How does bankruptcy affect individuals with secret clearance?

[wildlikekyle]

Debt Calculator asks for email and phone number btw, unlike he said in this vid.