Why Bankruptcy Should Only Ever Be Used As a Last Resort
Bankruptcy Should Only Ever Be Used as a Last Resort. Here’s Why.
Millions of Americans are behind on their bills, so you’re not alone in looking for the best way to get out of debt. Some have lost their job, or are overwhelmed by poor health and unsecured loans and bills. Others are getting a divorce, or have simply let bad spending habits catch up with them.
Whatever the case, having your finances spiral out of control is an emotionally taxing situation, and some choose to file bankruptcy out of desperation.
It’s a weighty decision that often is not the fresh start you’ve been hoping for.
Some Simple Truths About Bankruptcy
By even just considering bankruptcy, your financial situation is in a precarious position.
Here are some basic elements to consider regarding bankruptcy:
There’s a chance that you could clear some of your debts within 3-9 months after filing for bankruptcy and many creditors will be kept from collecting
However, it will cost you hundreds of dollars in legal fees and it can’t eliminate all kinds of debt
With IRS and tax debt for instance, none of your tax debts will be removed
Same goes for child support, alimony, federal student loan debt, and others debt
On top of this, there’s potential you could lose assets like your house and your car,
Your bankruptcy becomes a public record
The largest damage is done to your credit. Your credit score is severely impacted for 7-10 years. It will become virtually impossible for you to obtain loans, or even rent an apartment or office space
Your auto insurance rates can even be affected. You’ll lose all your credit cards, and have to pay for everything with cash
Other Options to Consider Instead of Bankruptcy
Bankruptcy can sometimes seem like it is the only option. Again, it is there as a last resort to resolve debts.
But the good news is that there are bankruptcy alternatives to consider first.
Options such as a debt relief program would allow you to create a strategic debt settlement plan to allow you to settle with your creditors and have less negative impact on your life.
In addition, by letting your accounts become delinquent, you run the risk of legal action being taken against you. So before creditors take out legal action against you, there are legal protection products on the market which can assist should a creditor take legal action against you.
Call our friendly debt consultants and we’ll help you take an honest look at some options to solve your debt issues and explain which debt reduction solution might be best for you.
Click here to book a free debt consultation or call us for free on (1) 833 433 2856.
(Please note, bankruptcy law in the US is complex and if you are seriously considering this option then we suggest you take a number of legal opinions before making a final decision. Get in touch and we can refer you to a trusted legal partner).