Too many credit card bills? For
call toll free for alternative to bankruptcy.
mind, bankruptcy doesn't come without some trade offs. Often
times, you see advertisements promoting bankruptcy as "fast and
easy", but that generally applies to the lawyer who files on
your behalf, not you. Your lawyer isn't the one who has to live with
the stigma of filing for up to 7-10 years.
Filing puts the world on notice about your personal financial
affairs. Since its a civil court proceeding, it becomes a matter of
public record. In some cases, (chapter 13) even your employer can be
involved because this chapter requires deductions from you paycheck.
Bankruptcy also stays
on your credit report for up to 10 years and can hinder your ability
to get a job, establish new credit, get insurance and even a place
to live. You will also have to pay court, attorney and filing fees
up front. Furthermore, you will lose control over your finances
since a Trustee will be appointed to oversee the completion of your
filing. Trustees don't come cheap either. They charge an
average of 8% to oversee the successful discharge of your bankruptcy
(total debt) x .08 (Trustee Fee) = $2,000 plus attorney, court and filing fees)
This in addition to
the fact that filing doesn't necessarily get you out of all your
obligations, bankruptcy may not be that end-all solution that its
portrayed to be.
* You can simply walk
away? If you have no assets, creditor can't attach any
property. Unless a creditor has a substantial amount invested in you
and/or your state prohibits garnishment of wages,
you probably don't have anything to worry about. However, you should
be prepared for collection attempts via phone and mail, and threats
of lawsuits if you decide to go this route. This is not a
recommended way to deal with your obligations.
* You can try to
deal with the creditors yourself and work out a new payment plan.
* You can try to
budget your expenses and live a more frugal lifestyle, or take on a
second job to bring in more income.
* You can contact
one of the many debt consolidation / credit counseling services that
specialize in helping consumer with credit problems.