Bankruptcy is a voluntary or involuntary legal proceeding where a person or company that can no longer pay his, her, its, or their debt(s) may get a fresh start by either selling assets to pay off the debt or create a repayment plan. (Title 11 U.S.C.) For more information on Bankruptcy, click here.
Debt Reduction or Debt Settlement is a method of wiping away the debt by coming up with a mutually agreeable amount between the creditor and debtor. This is one of the methods in paying back the debt that the debtor owes to the creditor.
If you have questions about debt settlement, please do not hesitate to contact an attorney.