Considering Alternatives to Bankruptcy

Is bankruptcy for everyone? No, of course not. You have to learn to weigh the pros and cons of any financial decision, and bankruptcy is no exception to this rule. However, you should not eliminate bankruptcy as an option simply out of shame or because you sense and impending doom if you file Chapter 7.

What you really need to ask yourself is what will the consequences be if you don't file for bankruptcy, and what will they be if you do file. Since Chapter 7 often carries with it a sense of shame for those involved, many people look at this as absolutely the last option they should ever consider.

The problem with this line of thinking is that a family could very well wipe out its savings and retirement funds trying to pay back debts that are simply too big and too overwhelming.

Before you liquidate your pension funds or use every extra penny just to make the minimum payments each month, you should fully consider the possibility of filing Chapter 7 bankruptcy (or Chapter 13, for that matter).

There is no use in wiping out your retirement funds or putting your house on the line through a home equity loan in order to pay off unsecured debts like credit cards. Yes, a sense of personal responsibility is important and commendable, but you don't have to ruin yourself when the law allows for debt forgiveness.

If you can't see yourself paying off your debts within a few years while maintaining a reasonable standard of living, you may be too deep in debt to solve your problems with the conventional alternatives to bankruptcy.

Sometimes the simple solutions like getting an extra job are simply not enough. Still, you need to have all the information you can get your hands on in order to make the best decisions possible.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn the answers to common bankruptcy questions visit us at http://personalbankruptcyquestions.org

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