Avoiding Personal Bankruptcy – Filing Bankruptcy – New Era Debt Solutions

The best person to give you information on filing bankruptcy is a personal bankruptcy attorney. But before you start racking up the legal fees, you would be wise to find out as much as you can about avoiding personal bankruptcy.

There are a number of pitfalls in the bankruptcy route. Some of the major disadvantages are:

  • Personal bankruptcy is a lengthy and time consuming legal procedure that you do need to qualify for. Filing bankruptcy can require a different process from state to state as the protection offered by law varies.
  • It’s not always possible to file for a straight bankruptcy under Chapter 7. There is always a chance of you falling under Chapter 13 as amended by new laws. In such a case you will be obliged to commit your future earnings.
  • You may be able to obtain debt relief, but your credit score will suffer permanent damage, and the fresh start you dream of may not so quick in coming.

If you’re considering filing bankruptcy, we recommend that you take your time making the decision, and do your research. Investigate the possibility of debt settlements as a means of avoiding personal bankruptcy. The concept of debt settlement is based on negotiations with creditors. You could do the negotiations yourself or use the services of a debt settlement company. Remember that your credit card company is also facing the recession, just like you. They prefer to negotiate and recover as much money as possible, and this makes debt settlement an even better option for you. In today’s economy, filing bankruptcy should be your very last resort.