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| Bankruptcy Disadvantages |
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Bankruptcy is terribly intrusive because you are required to publicly disclose your
financial activities over the previous two years. You must also disclose the current
property that you own. Additionally, bankruptcy is emotionally draining because many
people interpret bankruptcy as meaning failure. Bankruptcy also leaves a long lasting mark
on your credit report and does not rid you of student loans, certain child support obligations
and certain tax debt.
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| What other options should be considered? |
- First consider whether the debt problem is temporary or will the circumstance last a while. Permanent disability may be far different than job loss.
Both are devastating situations but one may or may not require bankruptcy and the other may only require negotiating with creditors.
- Creditors are human beings. They are also business people. They do not want to see bankruptcy for you.
They know customer relations are their lifeline and bankruptcy is profit out of their pocket. Therefore,
see if they will work with you to lower payments, skip a payment, change billing dates, anything.
Do whatever is necessary! If all else fails send a smaller than minimum payment. You can not get
in trouble for making a bone fide attempt to repay creditors no matter how small the payment.
- Instead of thinking of all the debt you have or the high interest or high balance debt, think of the
debt that can be paid off fastest. Is there any way to pay one debt off quickly by selling something
and then use that added income to apply towards the next fastest payoff. In other words, do not try
to chop down the whole rose bush. Work with cleaning off one or two unsightly limbs first and see where you are.
It is far to easy to get tangled up in the thorns and not be able to envision a clean emotional environment.
- Get professional help from Consumer Debt Group, a legitimate debt arbitration company
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