Which is better? Bankruptcy or debt settlement? First off, it depends entirely upon your circumstances, and only a lawyer who’s qualified and can look at your situation and make that assessment. Debt settlement companies cannot assess whether or not you should file bankruptcy. Only a lawyer can make that assessment. The first thing you need to do is to see if you qualify. If you do qualify, then certainly bankruptcy is the way to go. Bankruptcy would be much less expensive, bankruptcy would be much faster, and much more complete. You will become debt free faster and be able to move on with your life. If you don’t qualify for bankruptcy then you have no other option other than the debt settlement, which again, only a lawyer you should use for that purpose.