Debt Settlement - San Francisco

It’s important to weigh the pros and cons of debt settlement vs. bankruptcy when deciding the best way to deal with your debt. Here are some of the key difference between the two.

Debt Settlement

  • Can pay less than the full balance of loan.
  • Settlement can take days to months.
  • Creditor can bring lawsuits to collect its debt during settlement process.
  • Unpredictable outcome.
  • Attorney fees – paid by the hour. We cannot estimate time it will take.
  • Default will be reported on credit report and lower credit score.
  • Will be taxed on amount forgiven. 


  • Chapter 7 – discharge all debt without payment. Chapter 13 – make partial payment based on disposable income and liquidation analysis.
  • Chapter 7 – typically takes 4 months. Chapter 13 – 3-5 years.
  • Once in bankruptcy, Automatic Stay prohibits any further collection activities.
  • We can be reasonably certain of outcome.
  • Attorney fees – usually flat fee.
  • Bankruptcy will be reported on credit report up to 10 years, though some credit agencies report completed Chapter 13s for only seven years.
  • No tax consequences. 

JC Law Group PC is a San Francisco law firm. We work with individuals and small businesses in overwhelming debt. Our services includes: debt settlement, Chapter 7, Chapter 13 and Chapter 11 bankruptcy.

photo by: samantha celera