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Avoiding Bankruptcy using Debt Negotiation

Posted by in Finance: Debt Consolidation  ~  May 26, 2013 11:51:44 AM

Sometimes, you get to a point where it seems that the only option you have to get out of debt is to file for bankruptcy however, before taking such extreme measures you should take a look at the options you have. The main reason to avoid bankruptcy is the irreversible damage that you put yourself through. The mere mention of bankruptcy on your credit scored regardless of how long ago it happened will close any financial doors in the future.

Going to court – you’ll have to go to court and every aspect of your finance and to some extend you personal life will be put under questionin regardless of you filing for bankruptcy you are still likely to get continually harassed by creditors. It’s not easy or just a matter of going to court and declaring I’m bankrupt. You need to prove beyond reasonable doubt that you tried every possible way to repay your debt to your creditors and that this is the absolute last possible way for you to get out of debt. All and all filing for bankruptcy is very stressful, time consuming and expensive exercise that you should try and avoid at all cost if you can. On the other hand using debt negotiation is a much less stressful and drastic ordeal. First you are viewed as someone who is trying to pay his debts so creditors will defiantly be more likely to discuss a solution with you after all get some money back is better then none. Secondly when creditors agree to settle your debt your credit report will show settled instead of bankruptcy which is a huge difference, Settled basically means that that you have been paying your debt according to terms agreed with your creditors. This is much less severe and you are much more likely to get a loan in the future if your finance is in order.

As you can see filing for bankruptcy is a life changing decision that will effect every aspect of your life (probably in the worst possible way).while debt settlement negotiation is an easier option with plenty of choices.