subject: Why File Bankruptcy Over Credit Relief [print this page] Why File Bankruptcy Over Credit Relief Why File Bankruptcy Over Credit Relief
These days, many families are struggling to make ends meet. After a certain point their suffering reaches a tipping point. The trigger may be a job loss or catastrophic illness in the family, or something else entirely. This is when they start to wonder if they should, perhaps, file for bankruptcy or seek the help of a debt relief agency.
A legitimate and honest debt relief company can do many good things for you. It can put you through courses that show you how to handle your finance to avoid similar financial troubles in the future. It can help you to find answers to your ongoing credit problems by showing you how to negotiate with your current creditors to get your interest payments reduced, parts of your debt discharged, and additional forms of debt relief as well.
Not all such agencies are good or hones, however, If, by chance, you happen to contract with a debt relief agency with a history of taking advantage of consumers, and is only in the business for a quick buck, then you could end up worse than before. So, the key to being successful in handling your debts, is to do lots of due diligence before choosing a debt relief company.
The more drastic solution to your financial problems is bankruptcy. The advantage is that when you file for bankruptcy, nearly all of the significant debts that you owe to your creditors could end up being discharged. This would leave you free and clear of any debt and with a chance to start to rebuild your financial life anew.
There is a disadvantage, however. For example, let's say that you have many valuable assets - such as a coin collection. In this case, there is the possibility that you could end up losing them all when your assets liquidated to pay off your creditors. You also will be doomed to having an extremely poor credit rating for 8 to 10 years. And lastly, the fact that you filed for bankruptcy will show up on your credit report. So, for a few years anyway, you may have trouble renting an apartment, getting credit, and so on. But, if your financial circumstance are that dire, this may be the best option for you and your family.
The most important thing is to take your time before making a life altering decision one way or the other. Before deciding on either route, make an appointment with a good bankruptcy attorney in your community and talk over your issues with him. Also, make appointments with trustworthy debt relief agencies and get their opinion.
Seek out friends or acquaintances who have had to file for bankruptcy or seek debt relief help. Talk to them as well. Whatever decision you make is going to have long lasting repercussions on your financial status. So, only make it after careful consideration of all pertinent facts.
