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With the economy is nestled deep into recession, many people are exploring the option of filing bankruptcy. We receive emails quite frequently from folks asking if they should file. While only you can make that decision for yourself (hopefully with the advice of a professional), we can give you the advice that there could be a better alternative.
Filing bankruptcy is very damaging to your credit, not just now, but for years to come. By filing bankruptcy, you are guaranteeing yourself that there will be no new homes, new cars, or loans of any type in your near future. Are you sure that you want those doors sealed shut on you?
Often times simple communication can be the key to getting back on track. The best way to avoid having to file for bankruptcy is with debt settlement. Settling your debts saves your credit score from plummeting. The process starts by calling your credit card companies and asking them to work with you. If you are unable to get anywhere with them, then there are a number of low-cost services that will negotiate for you, saving you thousands of dollars and your credit score.
Debt consolidation is another option for avoiding bankruptcy. This process combines all of your debt into one monthly payment, usually with a much better interest rate than what you are currently paying for credit card debt, saving you hundreds of dollars in payments a month. There are many debt consolidation companies to be found online. Check around for the best rates.
Bankruptcy is a necessary evil in some cases, but for most, the two options above will be better for you in the short and long run.
To the extent that this article suggests that is presents “better options”, it is misleading. No one should be reading this and ruling out bankruptcy as an option. The only way you can determine whether there are “better options” as this article suggests, is for a consumer to meet with an experienced attorney who can hear all of the facts and assess whether bankruptcy is the best option.
I love the theory of the article! However, in my personal and professional experience, there are many creditors out there who will not work with consumers. Also, if one has to go with an agency to help get the bills paid or even debt consolidation, what does that person do if they fall into more troubling times and can’t even make those payments? Bankruptcy is an option that no one should discount. It is actually easier in many cases to get on the road to credit recovery after a bankruptcy as the creditors know that a person can’t file for another 8 years, so there is much less risk for them when it comes to not recovering their funds.