Bankruptcy is one of the prescribed options to clear your debt. It should be taken as the last resort. Many Credit card users in the US have been having a tough time. They have collected massive debts and have no means of clearing them. You too are amongst them and are looking for debt relief.
Bankruptcy is a very serious legal procedure and needs to be taken with the seriousness it warrants. It is a legal provision by the rules of the government to assist those people in financial difficulties. It commences by you going through a counseling session with a government approved professional debt counselor. After going through the counseling session it will be established if you are eligible for bankruptcy. It also requires huge fees to file bankruptcy which could range from $200 to $300.
Take a look at the protection you get from bankruptcy. It is a common misnomer to think that you will not loose your home and other personal assets by filing bankruptcy. The bankruptcy laws vary from state to state. Some states do not even exempt home equity from bankruptcy. Thus if you happen to reside in these states and file for bankruptcy you may end up losing your home too. Debts acquired through fraud and with no intention of paying it back can not be discharged by bankruptcy. If you have maxed out on all your Credit cards and are hoping to clear the debt using bankruptcy you will be in trouble.
Go for a debt settlement instead. You can seek to reduce your net outstanding debt by making a one time payment for up to 50 percent of the amount. The creditors will give you a discount or waiver for the balance amount. Your Credit score will also remain relatively unharmed when compared to bankruptcy. Therefore go in for a debt settlement instead of bankruptcy.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your st