Why Bankruptcy May Not Be the Best Option for Getting Rid of Debt

Bankruptcy is a very serious choice with very serious consequences. It can leave a permanent scar on your credit record, and requires you to put in endless hours of preparation. On top of that, you may need to juggle court appointments and could even lose ownership of your home – is that something you’re prepared to do?

You may feel like your situation is hopeless and there’s nowhere else to turn, but before you choose bankruptcy, you need to exhaust all of the best debt options available.

WHAT DOES BANKRUPTCY DO TO MY RECORD?

Bankruptcy is not often considered one of the best debt options, because it can destroy your credit standing. You will have significant trouble applying for loans and being approved for apartment rentals. You may even have difficulty obtaining auto insurance. Many people think it’s an easy way out of their financial troubles – but the stigma attached to filing for bankruptcy makes it a bad idea for people who are qualified to use the best debt options like debt settlement.

HOW CAN BANKRUPTCY AFFECT MY FAMILY?

When you file for bankruptcy, it doesn’t just affect you. Your spouse’s credit may also be affected – and their credit will also reflect your bankruptcy.

WHAT HAPPENS TO MY THINGS IF I FILE FOR BANKRUPTCY?

If you file for bankruptcy, you stand to lose everything you own which has equity. This can include your home, your car and any properties that you own – and that’s why bankruptcy is not to be taken lightly. There are different types of bankruptcies which allow you to keep different assets, but knowing these facts should help you decide if bankruptcy is one of the best debt options for you.

WHO SHOULD FILE FOR BANKRUPTCY?

Only people whose financial situations are very dire should file for bankruptcy. If you have little or no income and your debts prevent you from paying new bills, bankruptcy might be your one of your best debt options. However, if you have any way to avoid filing for bankruptcy, you should avoid doing so – learn about the best debt options before you even consider bankruptcy.

WHAT ALTERNATIVES DO I HAVE?

Debt settlement services may be one of the best debt options available for you and others in your situation. Debt settlement involves handing your bills over to a trained professional who can negotiate the amounts you owe with hard-hitting creditors. Professionals can often whittle your total amount due down by 15 to 40% because they’re trained negotiators and know all the ins and outs of the money lending business – and creditors are more than happy to work with them to erase your debt.

WHEN IS SETTLEMENT ONE OF MY BEST DEBT OPTIONS?

Debt settlement is one of your best debt options when you can make a commitment to becoming debt free in the next one to three years. Being free from the burden of debt while improving your credit is a far better alternative than bankruptcy.

Darren Shoaff has been in the debt relief industry for over a decade. From assisting clients, and providing them with information about their best debt options, to developing turn key negotiating and credit management processes, she has extensive experience and is here to help you find your best debt options.