Debt Management

Debt settlement should only be used as a last resort to avoid bankruptcy because it has a seriously negative effect on your credit. But, if your credit report shows multiple accounts that have been charged off by creditors, the debt settlement may actually improve your scores a little because no more negative information will appear after the credit reports the account as Settled" or "Paid in Full for Less than Full Balance". This derogatory information will stay on your credit reports for about 7 years. A bankruptcy can stay on your reports for up to 10 years, and it generates a public record about you. This means that anyone who wants to know will know that you filed for bankruptcy.