Is Bankruptcy The Best Option?

There is absolutely no doubt that bankruptcy is a highly effective way of clearing all your debt. If you are considering this move because of the financial mess you are in however are you fully aware of the consequences in taking the bankruptcy route? Bankruptcy laws may vary from country to country. If you have international creditors looking to be paid you would be well advised to check where you stand in filing for bankruptcy. Make sure it will be as an effective solution as you believe it to be.

Another very important point to make clear is that bankruptcy will remain on your credit status for a number of years which may cause you a great deal of difficulty in raising credit of any kind until it has elapsed. Bankruptcy really should only be seriously considered when all other attempts have failed.

Take time, seek advice because there may be alternative ways to eliminate your debt and improve your credit standing as a result.

So, what can you do?

One way to seek advice is to talk with an experienced and reputable credit counselor. Together you could create a money management plan to reduce your debt to begin with as well as working out a monthly budget taking into account all income and expenses. By focusing on reducing your expenses you will be able to reduce your debt even further. This does take time, effort and self-discipline but it will be worth it in the long term.

There are so many horror stories about people owing so much money to their creditors that they have lost everything and this may push some people towards bankruptcy. Truth of the matter is it is all about communication. The vast majority of creditors well, the reputable ones anyway, are more than willing to help you especially if you have informed them that you were in difficulty and not ignored their letters to you.

The reason they are willing to help is they know you have bankruptcy as a real option and through which they will receive nothing. To them it is better to get something rather than nothing. It is likely, therefore, they will be open to negotiation. Discuss what options are available and come to some agreement by creating a payment plan then sticking to it. You have the additional benefit of rebuilding your credit standing.

There is one other option you have but only applies if you have absolutely no income and absolutely no assets to your name and that is to do nothing. Bankruptcy under these circumstances does not benefit you. Moreover it is highly unlikely that creditors would go through the hassle and waste time, effort and money pursuing you legally when there is nothing to pay them with.

So, is bankruptcy really the best move for you? It may well be but take the time and consider all other options first. Visit for more information-- Where money really does grow on trees!

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