Choosing Bankruptcy as a
Debt Relief Option

For a lot of people, “bankruptcy” is a word that is thrown around when someone is experiencing severe financial troubles. But bankruptcy might not be for everyone and, like other debt relief options, is only intended for people who qualify.

Even if you are eligible, it is important to fully understand the bankruptcy process before choosing something that many say should be considered your last option.

If you are seriously considering bankruptcy you should seek advice from a licensed attorney in your jurisdiction. Here are several factors you could consider:

What types of debts are getting you in trouble?Find out whether your debts can be discharged with a bankruptcy. For example, if most of your debt is federal back taxes from less than three years ago, a bankruptcy may not help at all.
Do you have the time and resources to file a bankruptcy?In order to file, one generally has to go through credit counseling ⁱ . You may also require the assistance of an attorney, which can become costly.
Are you willing to lose valuable assets?Depending on your income, how many and what kinds of assets you have, you may stand to lose property such as a second home or vehicle as well as collectables, heirlooms or investments ⁱⁱ .
Have you discovered other ways of resolving debt?If you have not looked at other options to relieve your debt, you may be rushing unnecessarily to bankruptcy. Take a careful look at your situation-your obligations, needs and ability to pay-and consider talking to a bankruptcy attorney. Debt Shield can give you helpful information and a free consultation regarding debt settlement as a debt relief alternative.

There are benefits to filing for bankruptcy. Bankruptcy can eliminate all or most of your debt and provide the peace of mind that comes with living a debt-free life. Also, after filing for bankruptcy, creditors and collectors must cease collection attempts. As such, if your bankruptcy petition is approved, you won't be at risk of being sued over your debts discharged by the bankruptcy. But there are downsides to bankruptcy too and it should be considered a debt relief option only when the negatives are understood. Bankruptcy can possibly be:

Damaging: Bankruptcy may remain on your credit record for up to 10 years
Strict: You may be required to undergo a “means test” (an income evaluation to see if you qualify for a Chapter 7 or a Chapter 13 )
Costly: Assets may be taken for payment ⁱⁱⁱ
Invasive: Your finances may be thoroughly examined
Expensive: Legal fees may become burdensome
Lengthy: Depending on circumstances, the process may be extensive

Debt Shield provides debt settlement as an alternative to bankruptcy. Contact us today for your free, personalized debt assessment. If you are interesting in pursuing or learning more about bankruptcy, contact a licensed bankruptcy attorney.

Disclaimer: Debt Shield, Inc. is not a law firm and under no circumstances should the information on this page or website be construed or relied upon as legal advice. If you need legal advice, you should contact an attorney licensed to practice law in your state.