The Bankruptcy Trap - Why Not To File For Bankruptcy
If you are in financial trouble and can't find a way out one of the first options people resort to is bankruptcy
. Sometimes this is the right decision and some times it is not. It all depends on what your goals are going into the bankruptcy.
If your goals are:
To reduce your debt to the lowest level possible
Reclaim your financial status
Keep your house and car
Suffer the least amount of emotional pain as possible
Then Bankruptcy is NOT your answer.
This is not the general opinion of most people entering into bankruptcy. The general opinion is usually the exact opposite and this is where most people get into trouble. Let's review why this might not be your best option.
The best option that I have found to reduce your debt to the lowest level possible is debt settlement. I have negotiated my own debt for 22% of balanced owed and can show you how to do the same. Filing Chapter 13 would have only reduced my debt by 40% as a payment plan would have been put into place for repayment over three to five years.
A bankruptcy stays on your file for ten years. PLUS, if you apply for a job outside of the ten years you still have to answer yes when they ask. Otherwise you could be charged with fraud. So in effect, a bankruptcy is on your file FOR LIFE.
This changes things for most people as now the bankruptcy is not temporary, it is a permanent part of your record. A settlement can be negotiated with terms outlining the exclusion of negative comments on your record.
These are just few of the benefits of negotiating your own debt.
Please visit http://www.debt-relief-pro.com for more information.