Weighed down by debt? Starting to think that filing for personal bankruptcy is your only option? You're not alone.
With the country still in the grip of a recession, thousands of people who could never have imagined themselves filing for personal bankruptcy are having to do exactly that.
Should you declare yourself bankrupt? Making the decision to file for personal bankruptcy is not something to be taken lightly.
True, it can bring huge relief from debt-related stress and finally give you the chance to start over.
But bankruptcy is no panacea.
It comes with consequences.
So be sure to weigh your options carefully before taking the plunge and contacting a personal bankruptcy attorney.
Filing for personal bankruptcy: the positives Bankruptcy can be a real choker if you have a stack of assets you'd dearly love to hold onto.
But if you don't, it can really work to your advantage.
The less you have to lose, the more you have to gain.
When you declare yourself bankrupt, you clear all your outstanding debts or commit to repaying them in a manageable way.
The people you owe money to will no longer hound you for payments.
That can be a big weight off your mind.
But best of all, with all your debts taken care of, you're free to start rebuilding your future.
For many people, this is like finding a new lease of life.
Filing for personal bankruptcy: the negatives Naturally, there's a downside.
Declaring personal bankruptcy can have far-reaching effects, which may linger for years.
What if you do have assets you know you'll have to give up? Maybe they've been in the business or in your family for generations.
Can you live with the sacrifice? And how will you and your loved ones cope with a major change of lifestyle? Then there's your credibility.
It's sure to take a severe knock if you declare yourself bankrupt.
You can count on finding it tougher to obtain credit or take out a loan.
Alternatives to filing for personal bankruptcy Of course, if you decide against bankruptcy, you still need to find a way out of your debt nightmare.
Fortunately, there are alternatives.
Debt consolidation brings all your debts together.
The debt consolidation company pays off your debts and works out a deal with you to pay them back.
Debt settlement is similar to debt consolidation except that the company that takes on your debt negotiates with your creditors so that you pay off a percentage of what you owe rather than all of it.
Be sure to seek professional advice