Many people believe that filing for bankruptcy can put an end to their loans and their debts and let them go free. But, what they don’t realize is that there are some loopholes in bankruptcy process, which might let them regret at a later stage. When you find it getting more and more difficult to pay the bills on time and interest rates rising faster than ever, your normal life can become horrible. However, bankruptcy is not the only solution to your problem. Before moving to the other alternative, let’s have a look into the negative impacts of bankruptcy:
The worst impact that bankruptcy can cause on you is that it can completely shuffle your credit ratings. Realizing the importance of credit history in your future, you would never like your ratings go really down due to bankruptcy. Another reason is that all the debts are not considered applicable under bankruptcy. Even after filing for a bankruptcy, there might be some debts left out that you have to take care of yourself. Apart from these, once you file for bankruptcy, you have to sustain yourself for minimum of 6 years until which you will not be allowed to file for any more bankruptcies. There are also chances that your assets, accounts and home equities feel the heat you can lose them. These are some of the reasons which can compel you to keep the bankruptcy as your last option.
So, what other alternative you have? The ideal answer can be to consider a debt settlement process. When compared to bankruptcy, this process is lot safer and your massive debts can become a cake walk for you. Not only your credit report remains good, your assets also remain safe. While there are provisions for your outstanding amount being reduced to a small sum, the interest rates are also quite low. Further if you consider a debt settlement, you will be given a clean and perfect strategy and well planned repayments enabling you to manage your expenses and rebuilding your economic condition.
Finally, don’t turn a blind eye on the alternatives and go for a detailed research on all aspects before adopting any of them. After all it is your entire future that you have to take care of and you are the only one who has to analyze and take the wise decision.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified.