Debt Settlement Could Be a Reasonable Alternative to Bankruptcy

Times are tough. No one seems to have enough money to make ends meet, and in some cases a person's financial situation has become so bad, that they are seriously starting to think that bankruptcy might be the only option.

What few people understand is what all goes into filing bankruptcy. We assume that since we don't have enough money to pay our bills, than bankruptcy is the only option we have left, and that once we have admitted we are no longer able to fulfill our financial obligations, the worse of the situation is over.

The Cost of Bankruptcy

The reality is that bankruptcy is a very complicated process. Even more importantly it is expensive, really expensive. There is a really good chance that if you are already having a difficult time paying your bills, that you won't be able to afford to file for bankruptcy.

Before you file for bankruptcy, you need to evaluate your finances and determine how much you can reasonably afford to spend filing for bankruptcy.

The average filing cost for bankruptcy usually ranges from $189-$274, and that is just the cost of filing. Just because you have filed for bankruptcy doesn't mean that you will be officially declared bankrupt by the court.

Since filing for bankruptcy is so complicated you really need to hire the services of an experienced bankruptcy lawyer. Since the lawyer knows you are struggling financially, they are going to insist on being paid up front. The more complex your finances are, the more time your lawyer is going to have to dedicate to your case, which means the more it is going to you are going to have to pay.

If you realize that you can't afford to file doesn't mean that you have to resign yourself to dealing with harassment from your creditors for the rest of your life. There are alternatives to bankruptcy that could be perfect for you.

Debt Settlement

One of the best alternatives to filing for bankruptcy is debt settlement. Debt settlement is a term that is used to refer to the process of striking a deal between the debtor and their creditors. This process is usually accomplished with the assistance of a debt settlement company who negotiates with a person's creditors.

People are often surprised by how willing creditors are to work with someone who is trying to pay their bills. It isn't unusual for a creditor to forgive interest rates and late payments provided the debtor is willing to pay of the principal of the loan. While most debt settlement companies do charge for their services, the charges usually add up to less than filing for bankruptcy. The other advantage to selecting debt settlement over bankruptcy is that the debt settlement won't have such a devastating effect on your financial future.

David has been writing articles for 2 years. You can visit his newest website which talks about how to find and replace a 5 gallon water bottle cap, and contains info on the best 5 gallon water bottle rack with hints and tips on how to use it.

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