On an average, more than one million and two hundred thousand Americans apply for bankruptcy each year. It could be the result of being irresponsible with commitments or abusing their credit worthiness or caused by unforeseen problems like losing their job suddenly. A massive medical bill, losing a job or a bad divorce, could result in a loss of savings and a large increase in debt. They could get a reprieve with debt-settlement and that choice should be made with the help of a qualified debt settlement attorney to assure the person is making the right choice.

According to the financial laws of the country, by filing for bankruptcy, a person with a high debt can seek relief and begin all over again financially. It give will some breathing time to put things back in place and will also spare one from the continued pressure of the creditors. The laws will also allow the creditor to be able to regain their credit in partial payment method in a phased manner.

But most do not want to follow this path. To most people, it means financial irresponsibility and carries with it a stigma, even though almost all who want to file for bankruptcy want to repay their bills and are just unable to do so. This too could be sorted out in the proper manner by approaching a debt settlement attorney. But it is the established standard to first explore the debt settlement possibilities.

The ideal approach to debt settlement is to approach a debt settlement attorney to safe guard your interests. The attorney will be effective as an arbitrator to negotiate between the debtor and the lender to arrive at a debt settlement agreement. The attorney will be experienced enough to deal with the terms and the financial language of the creditors and will be able to offer creditors with a workable scheme to lower the total outstanding amount that has to be repaid to the creditor. By using the last ditch approach of filing for bankruptcy, the debt settlement attorney will be able to bargain hard with the creditors. He will impress upon them that they will be cutting clear of their losses by agreeing to a lesser amount to be repaid and will in fact be able to get at least a percentage of their returns by accepting the debt settlement formula he as the debt settlement attorney is offering on behalf of his beleaguered client.

The debt settlement attorney is able to convince and prove to the creditors that the true intention of the debtor is to repay the whole amount, but because of the excruciating financial conditions he is unable to make the repayment and is therefore offering to pay this small amount.