paystub samples logo
Offer

Maine Pay Stubs

Maine paystubs show how to decide between a bankruptcy versus settlement. Understanding the short and long term effects of a bankruptcy versus a settlement can help you navigate through tough financial times. We offer a few factors to help.

How to Decide Between a Bankruptcy versus Settlement

    Financial difficulties are stressful and understandably when there is a poor economic climate. The foreclosure rates are always high and delaying in paying debts may add to stress that you start considering a way out. Bankruptcy and debt settlement have advantages and disadvantages. The key is in finding the right option. Knowing to compare bankruptcy vs. settlement of debts helps in deciding.

    As the first step, ask for your credit report copy and get an accurate picture of your debt level. Check the credit reports from the credit reporting agencies. Check if there are inaccuracies and make sure there are no unwanted debts.

    Prepare two lists, one of the monthly payments and one of your debts that are met from the net income sources. You must include the main residence mortgage as well. Determine the monthly debt and income, where in you must include all the utilities payments. Debt settlement is the best option in case it surpasses the income of your month. Workout settlement plans such that you need a lump sum payment to be made so that your creditors are paid.

    Bankruptcy is the option if you are debts is more than your monthly income. The debt amount and the financial situation help in determining your position. If you are paying only minimum due every month and there is a financial setback such as major illness, divorce or job loss, it will wipe all the debt. Fortunately, if you have assets, it can be sold by the court to make payments and will permit paying back the debts for few years.

    Before deciding on bankruptcy vs. settlement, understand the fact that your credit score will get affected and the buying power also has a setback in the future.

    Debt settlement reduces your credit score to 50 points even in case you have missed paying payments or have delayed payments. Bankruptcy will cut your credit score by 200 points instantly and stay on your credit report.

    With settlement, you pay a lump sum payment and pursue with your monthly minimum payments. A bankruptcy attorney includes court costs and filing fees prior to bankruptcy filing. With this, you may stop making payments.

    Understanding how to decide between a bankruptcy versus settlement may ease the confusion you feel when offers by creditors are presented. Hopefully, these tips from Maine paystubs can help you navigate through these times. Always consult a tax professional for the best advice based on your exact situation.

fake pay stub

This business is owned and operated by a U.S. veteran. The protection of your information is our TOP priority.

fake pay stub