Debt settlement or bankruptcy – Which is better?

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It is not a hype. Debt settlement is better than bankruptcy. Settlement hurts your score by around 125 points. However, bankruptcy hurts your score by 200-250 points. So, bankruptcy hurts your score more.  

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I don't think it's just a hype. Bankruptcy will be considered to severely negative item in your credit report by your futire creditors/lenders. Moreover, you can apply for a pay for delete with your creditors/collection agencies and get the debt settlement removed from your credit report. But it is not the same in case of a bankruptcy. If you file Chapter 13, it will remain in your credit report for 7 years and if you go for Chapter 7, then it will remain in your credit report for 10 years.

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