Bankruptcy

This is the fifth in a series of posts on becoming debt free. We turn our attention again to debt resolution options. We will discuss another option available to debtors for becoming debt free.

In this and later posts, we will discuss the choices you have available to you to discharge your debt obligations and become debt free. That is the objective, freedom from debt.

• Pay Off Your Debt in Full
  
• Consumer Credit Counseling
• Debt Consolidation
• Debt Settlement
• Bankruptcy

Here we will discuss the fifth option. In other posts I will cover the other debt resolution possibilities.

Bankruptcy

If you are you struggling with overwhelming debt or suffering from serious financial hardships bankruptcy may be a viable or wise option for you. However, it comes with a high price tag.

It is usually a long and painful process. Your credit report will continue to show a bankruptcy for 7-10 years and each time you make a major purchase, you will be impacted with higher rates. When applying for a job, trying to get a loan, rent or purchase a home you will feel the effect of the bankruptcy.

Bankruptcy should only be considered when none of the other four  debt resolution options will work for you.

For some people bankruptcy is a legitimate debt resolution option. However, there are significant consequences that you should try to understand before pursuing this.

Most people will do almost anything to avoid bankruptcy which is not a quick fix solution, nor is it easy. If you are considering bankruptcy, please consult a bankruptcy attorney in your state.

What Did I Miss?

I am not an attorney and nothing contained herein should be considered legal advise. You should consult an attorney concerning your specific situation.