When individuals are having money problems and trying to pay a whole collection of debts they soon become overwhelmed and start looking for the quickest solutions. Often they will think about looking at debt consolidation or they may even be willing to try debt settlement.
With debt settlement this means that they are trying to negotiate with the creditors some form of payment. Often this can lead to difficulty because they are making these arrangements out of desperation and won't be able to fulfill them.
It may be a better solution to go to see a bankruptcy attorney who can take a look at the financial situation and see whether bankruptcy may be the best solution. There are two forms of bankruptcy that are common which is the Chapter 7 or Chapter 13. With the Chapter 7 many of the debts can be discharged and with the Chapter 13 they are reorganized into a repayment plan.
Why a bankruptcy can be a better option is because it can offer a fresh start for the individual whose credit rating is probably severely damaged, and with the bankruptcy discharge they can now work towards the future by building their credit rating.
With debt settlement quite often appropriate arrangements cannot to be made and this in turn leads to further damage to the credit. In a Louisville bankruptcy some of the debts if not all can be discharged but with debt settlement this is not the case. The other great advantage of a bankruptcy is that there is legal protection put in place that can prevent foreclosures whereas with debt settlement this does not happen.