Most small businesses have run into trouble because of the recession. It is not only the small businesses but individual credit card holders have suffered the most. There are a huge number of people who have amassed insurmountable amount of credit card debt. Are you too one of the people looking forward to eliminate credit card debt?

Eliminating credit card debt is the first step in leading a debt free life. If you are a small time debtor, counseling should Debt Relief Texas be able to pull you through. However if your debt is large and can not be eliminated by counseling and debt consolidation the experts need to step in. Experts have recommended two methods to eliminate credit card debt. One is bankruptcy and the other is debt settlement. You need to decide which option you will exercise.

Well, let me tell you there is no standard answer to this question. In one set of circumstances debt settlement could be a better route. In a given set of circumstances bankruptcy could be more beneficial than debt settlement. A closer look is needed here.

Let us talk of bankruptcy first. Under chapter 7 you enjoy homestead protection. In some states like Arkansas, Iowa, Texas and many other states you can enjoy unlimited homestead protection. Wise business men have parked millions of dollars in their home equity and enjoy legal protection in the eventuality of bankruptcy. In such cases bankruptcy is a better option.

However some states like Maryland provide no homestead protection at all. If you do not enjoy protection under bankruptcy then debt settlement will be the smarter way to eliminate card debt. So the situation could be peculiar to your state and home conditions. That will decide in what manner you eliminate credit card debt.

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