When you talk about debt and about the fact that you cannot pay it anymore everybody comes with a single solution: bankruptcy.
Not only bankruptcy can be a bad solution, but it can also ruin your finances for a very long time.
Let's look at the possible disadvantages bankruptcy has compared with other debt relief methods.
When choosing to go for bankruptcy you need to keep in mind the fact that there might great disadvantages to the methods, disadvantages you haven't thought about.
One of the biggest issues of bankruptcy is hiring a lawyer.
We all know that lawyers can be terribly expensive and you need to keep that in mind and compare it with a debt settlement company's fee or a debt management company's fee.
Their fees might be lower than a lawyer's and the service provided might be better.
However, a good thing is that the lawyer will make sure that the documents you provide are in order and good to be send to court.
The same happens if you choose a company to represent you in a debt relief program, they take care of all the paperwork.
Another disadvantage might be the fact that your credit score will go so down you won't be able to get a loan for a few years.
If you own a business and you need money this could really mean having to deal with years of bad credit score.
Another thing would be the fact that your name will appear in the paper when filing for bankruptcy.
Let's take the following example: you are the owner of two businesses, one that is going bankrupt and the other which is still alive and working.
Let's say these are family business and one is on your wife's name, but the people you sell to know that you are involved too.
The business on your name goes bankrupt and your name goes in the paper.
The clients your wife is having might be reticent dealing with you from now on because they might fear that you will go bankrupt with the second business too.
If you go bankrupt they don't get anything.
See how bankruptcy can really mess your life and business? Why not take a look at other debt relief methods?