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Whether or not you file for bankruptcy also depends on the kind of debt you have. Bankruptcy will wipe out credit card debt, medical bills, and personalloans, but will not eliminate primary obligation debt; things like student loans, child and spousal support, and newer tax debt.
Taking the proactive step of negotiating debt with creditors offers several key benefits. Negotiating a debtsettlement allows you to find a solution that works for both parties. Keep in mind that lump-sum settlements generally cost less in total than monthly repayment plans.
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