subject: Is Debt Consolidation Better Than Bankruptcy? If So, Why? [print this page] Is Debt Consolidation Better Than Bankruptcy? If So, Why?
In the short term bankruptcy is an attractive solution because you can release most of your financial obligations in a fairly short period of time.
The harsh reality is that the government can take and auction off your assets or put you on a payment plan to pay back some of your debts.
Aurora Lillo Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out;
"...This would depend on what state you live in and whether you file for chapter 7 or chapter 13. If you will have to pay back your obligations, it would be better to do debt consolidation..."
When consolidating, you do have to pay back all of your debt but at least you don't have to worry about anyone taking and selling off your personal belongings. Not only that, you can quickly begin to build up your credit instead of waiting up to ten years for a bankruptcy stain to be removed from your report. Future creditors will value the fact that you are dependable enough to pay back what you owe and are more likely to trust you. There is also the added self-satisfaction of knowing that you are being responsible in honoring your commitments.
If privacy is important to you, don't expect to have any if filing for a bankruptcy. Your case will become a public record that anyone can pull. States do not usually post bankruptcy information in the newspaper, but the idea that someone can easily walk into a courthouse and have access to all kinds of financial information on an individual can be unsettling. When consolidating your loans, it's calming to know that all of your financial information will remain confidential.
It might take some extra time and energy to come up with the money for your consolidation program but when you think about what you can lose in a bankruptcy, the alternative is so much better. It's worth the sacrifice of coming up with the money to cover your bills. Also, you get credit counseling and the convenience of paying everything in one monthly payment.
"...With that said, bankruptcy may be the only option when your debts are so high that you have no way of paying them. Filing for bankruptcy is usually a last resort taken by people who are unemployed with no money coming in or who are ill with astronomical medical bills. In these cases, there may be no money to pay for food, rent and some of the other basic necessities..." added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.net
