Investing is all fun and games until someone goes broke. One hard reality which ever investor has to come to terms with is that you are not always going to gain. In a matter of six months, with bad decisions, a stock portfolio can be completely destroyed. Leaving the investor with no cash flow and no way to pay bills. There are very little options for investors who have had some bad luck other than to file bankruptcy. Bankruptcy is a process in which an individual who is in debt can seek relief from that debt from the government. It can be a viable option to an investor debt relief but certainly should not be the first choice.

There is no clear way to know if you should file for bankruptcy or not. Discuss your with your financial advisor or seek the help of a credit counselor. Additionally, most bankruptcy attorneys offer a free advisory meeting to help you clarify issues and see if you are a good candidate for bankruptcy. Bankruptcy is a choice that you will have to live with for years. It will affect your ability to get a loan, lease a car, rent an apartment, and invest. Individuals who file bankruptcy are considered back risk for lending and investment companies. There are alternatives to filing bankruptcy. Below are a summary of those options. Choosing which option is for you is going to depend on your specific situation and how much in debt you actually are.

Hire a Financial Advisor – This may be hard for an investor to do but often giving up the control of your money can help you get a grasp on your life. A financial manager takes your money, pays your bills, gives you set allowance. This is done until your life, finances, and spending habits are in control. If feel you can help self control seek out a financial counselor that can help you set up a budget. Making a budget is the easy part, adhering to it can be extremely difficult. Make sure you select an experienced and moderately priced financial manager. Many managers offer services for large fees and have very little experience.

Working with Creditors – Calling up your creditors, explaining your situation, and hoping that they will be able to work with you is always an options. Some creditors are more than willing to help their clients through a time of financial crisis. Most creditors are aware that some debts are just hard to collect even if there has been a bankruptcy therefore it is in their best interest to work with you.

Refinance What You Can- If you own a home, and have some equity in the home, consider refinancing your home to pay off all of your high interest debt. Make sure you seek out refinancing options from a bank or respectable lending institution. There are many companies who will offer to combine all your debts into one low payment but these companies also charge huge fees for this service. In other words to not give up one group of debts for another (perhaps more damaging) debt.