What is better Debt settlement or bankruptcy 13?

As far as your credit does, they are equally as damaging.

Debt settlement is a rip off, don't do it. They charge you ridiculous fees and don't do anything for you that you can't do for yourself.

If I HAD to chose one, I guess I'd go with Chap. 13, although I'm not a fan of either choice.

Good luck.

Forget ch. 13. Go for ch. 7.

Bankruptcy doesn't lower your credit score. It looks bad to creditors but doesn't lower the score at all. Debt settlement will continue to lower your score but also be reported as a settlement. Basically, on a scale from 1-10 with 10 being the worst for your credit, ch. 7 is a 10. Ch. 13 is a 9. Debt settlement is maybe an 8 but I would still say it's a 9.

Why ch. 7 than? Well because it's just a hair worst than the other options plus you don't have to repay the debts. Instead, save all that money and start over with your debts. Yes you will have ch. 7 on your credit report for 7-10 years, but ch. 13 and any debt settlements will also be there for 7-10 years but you also are paying all that debt back.

It's better just to wipe it clean and start fresh with no debts.

Both bankruptcy and debt settlement have a negative impact on your credit score. However, if you want to determine which of the two would be a better option for you, then you may have to consider various factors including your debt amount, monthly income etc. It is advisable to consult a debt management company before you make your move. http://www.debtburst.com/ is a reputed debt management company which can give valuable debt advice. Also, here is an article which can answer your question better: http://www.ehow.com/how_2002283_debt-bankruptcy-se...

I would go with a Debr Settlement. It would probably cost as much as filing banko, but it won't affect your credit as much. When filing banko, you usually have to pay your fees upfront, and when discussing settlement options with an attorney, they can set you up on a payment arrangement to pay the settlement off. Besides, settling a debt with an attorney looks a lot better on your credit, and if you have to later in life, then you can file banko. Best not to file banko if at all possible. However, I am not an attorney and I do not know your situation, but most attorneys give a free consultation and legal advice.