The Reasons to Avoid Bankruptcy When it comes to making major amendments in our personal finances owing to debts, bankruptcy is certainly not a quick fix solution. Recession has wreaked havoc on the lives of Americans with severe health manifestations such as anxiety and stress. But it is in the best interest of the consumer to opt for other alternatives such as debt settlement and debt consolidation to get out of their debt worries. In this article, let us talk in details about the reasons for avoiding bankruptcy to wipe off our debts and remove our financial woes. ยง ยง
The very first reason to avoid bankruptcy is that you cannot wipe off all your debts which can make your finances go haywire. Bankruptcy will necessarily stay on your credit report for the next 7-10 years. You will not be treated in the same way as before, and it will be more difficult for you to seek a mortgage loan in the near future. Your credit will be affected so badly that it will be a hard time before you can obtain another credit. It can also have a long lasting effect on your personal relationships, for when an individual decides to file for bankruptcy the entire household has to move through a rough weather. Instead of going out to spend time with your family you will end up visiting the attorney and accompany him for all trials and hearings. In US, more particularly there have been umpteen numbers of cases of marital break downs due to bankruptcy. More so, after filing bankruptcy many individuals experience more strain in personal relationships. Bankruptcy filing can be expensive because it is unlikely that you will be able to carry on with the bankruptcy procedures and attorneys are going to charge you a lot, and if you do not use an attorney, chances are that you will fall back severely with your huge payments, which you may never be able to repay.
It is clear therefore that all consumers should try to avoid bankruptcy for, if your assets are not enough to repay your debts the creditors can consider selling your property to cover up for your debts. Other than that, bankruptcy can cause irreparable damage to your financial wealth. The fact that bankruptcy is a public document can prove to be a constant source of embarrassment. A majority of people fail to realise that they do not need to file for bankruptcy in order to get out of their financial mess. According to the new laws of bankruptcy, a consumer needs to go through a means test before deciding to file for one. It is more important that the consumer is more organized with his finances and begins with a monthly pay off plan for the debts. The most difficult part of debts is not to believe that you are in trouble. This can help you to simplify your debts and avoid bankruptcy.