Bankruptcy has always been considered as the ultimate solution for all your debt problems.
But is that the truth? You need to consider this in greater depth.
Bankruptcy is a legal procedure.
It is a provision made by the government to provide debt relief to those people facing financial difficulties.
What are the disadvantages of bankruptcy? The first and the foremost, it is a procedure that will destroy your Credit score.
It will be almost one more decade for you to revert back to normalcy.
You will neither get good loans and nor get unsecured credit because of bad credit score.
The next important thing is bankruptcy can not clear all the debt that you have incurred.
Let us take a situation where you have maxed out the limit of all your Credit cards.
There after you are planning to file bankruptcy.
The fact remains that you had no intention of clearing the debt.
Debts that have been incurred without the intention of paying it back amounts to fraud.
Such debts can not be cleared by bankruptcy.
Therefore if you have maxed out your Credit cards and hope to clear the debt by bankruptcy it is not going to be accepted.
Why not try debt relief by debt settlements.
It is a very fine method of eliminating debt.
You will get to clear or eliminate as much as 50 percent of your debt legally.
The Credit card company will waive it.
However in order to obtain a waiver from the Credit card company you will need to pay the balance 50 percent in one lump sum amount.
The debt settlement will leave your credit relatively unharmed.
However an entry will be made in your credit report.
It will not be as damaging as bankruptcy.
Therefore look at bankruptcy as the last option for debt relief.