Although financial debt settlement is a viable option for some consumers, the credit implications of this approach can be profound and long lasting. Many consumers seek out debt settlement as a way to avoid the black mark associated with bankruptcy, when in reality, the credit damage associated with debt settlement can often last as long - or in some cases, even longer - than that which is associated with having a bankruptcy on your file. This is particularly likely to be the case if you fall into a service contract with a disreputable debt settlement company. Clients of these firms often find that it can take two to four years to settle all of the past due accounts and return the balances to zero (bear in mind that these will be noted as being paid by settlement on your credit report). On the other hand, with most types of bankruptcy, the balances are usually reported as zero within four to six months of the initial filing. From the perspective of minimizing your credit damage, bankruptcy is often preferable to third-party debt settlement.