If you’re at the end of your rope financially, you may well be considering filing for bankruptcy. At first glance, it may seem as if it’s your only way out, and the more you think about the better the idea seems. Laboring under a load of debt you can’t pay is a terrible burden to bear, and that’s what makes bankruptcy seem so attractive. But is it really your best, or only option? Maybe not drp. Here are some reasons you should consider other debt relief solutions before filing for bankruptcy.
First off, bankruptcy has changed a lot in the past couple years, and many consumers are not aware of these important changes. It’s now much harder to actually have your debts liquidated by the courts and get off to a fresh start. Banks, mortgage companies, and especially credit card companies had been complaining to Congress for years that it was too easy and painless to file bankruptcy, and that people were taking advantage of the system. These lobbies have a lot more money than we do, and Congress caved in, and bankruptcy these days is more or a debt restructuring process. So filing bankruptcy will still leave you owing massive amounts of money, but with a bankruptcy on your credit record. What advantage is there in that?
Second, other debt relief solutions can not only reduce the debt you owe, and help you preserve and/or rebuild your all important credit score, but they can also help you learn to get a handle on credit, debt, and managing your money. In addition, many of these debt relief programs are either low cost, or don’t charge you a dime.
Compare that to filing for bankruptcy. You’ll still need to pay a lawyer, probably over a thousand dollars, and even after paying them you will not have wiped out your debts. You’ll pretty much be in the same boat as you would if you used one of the other debt relief solutions as far as your creditors, but you’ll be out a thousand bucks for the lawyer, you’ll have a bankruptcy on your credit record, and you won’t really have learned much about handling your money.