Before the laws changed bankruptcy was seen as the best option for getting out of serious financial trouble. However, claiming bankruptcy will now stay on your credit record for at least 10 years and in many cases you will still need to repay your creditors anyway. This means that more people in debt are looking for alternatives to claiming bankruptcy in the courts.
Credit Counseling
A credit counselor is a person that can help you solve your financial problems. They are trained to thoroughly go over your finances with you and develop a budget that you can use to get out of debt. They can also assist with organizing debt consolidation loans, government grants and help you to negotiate with your creditors. They will be able to recommend the best course of action for your situation and if bankruptcy turns out to be your best option they will explain how to go bankrupt easily.
Debt Consolidation
A debt consolidation loan is designed to help you pay off all of your debts in one go. You are then faced with only one bill (which you pay to the debt consolidation company) at a low interest rate. This stops the creditors calling and allows you to create a personal budget that you will be able to stick with. Although there are some negatives to using this option, you could lose your assets if you miss a payment for example, most people with serious debt find it to be an attractive option.
If you have gotten into a situation where bankruptcy seems like your only option it is still important to research the other options available to you. It doesn’t hurt to speak with a credit counselor and in most cases the service is completely free. You might just find out that you don’t need to declare bankruptcy after all!
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