Q: What is better for my credit, filing bankruptcy or enrolling in a debt-repayment plan?

A: Although enrolling in a debt-repayment plan can be temporarily harmful to your credit, virtually nothing you can do is as harmful to your credit score as declaring bankruptcy is. In fact, the only thing more damaging to your credit than filing bankruptcy is inaction -- ignoring mounting debts you'll never be able to repay and simply allowing interest to accrue. Bankruptcy should be the last resort only for people who literally have no possibility of ever paying off their debts, and for whom the options of debt management and debt settlement are simply not feasible.

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