Written by Stefanie Marty
Bankruptcy filings are at near historical highs. Consumers feel that they are benefiting through filing personal bankruptcy. But totaldebtrelief.net advises to avoid personal bankruptcy due to different reasons. By filing bankruptcy it doesn’t mean that personal property cannot be seized anymore. Further bankruptcy has a long-term effect on the filers by destroying their credit records. It is almost impossible for filers to get any form of credit during a long period of time, it will be more difficult for them to get a job and it also leads more likely to higher deposits paid by them for utilities.
But certainly there are cases when filing bankruptcy makes sense. When to file for bankruptcy is different for everyone. John Turner, an attorney specializing in bankruptcies, says that in general people might need to start thinking about filing when they pay everyday expenses with their credit card.
Instead of filing personal bankruptcy totaldebtrelief.net advises individuals to consider alternatives like debt relief programs. One such alternative is a debt settlement which helps eliminating credit card debt. But also in such a process every step has to be evaluated carefully. As Susan Grant, director of consumer protection at the Consumer Federation of America, said: “There's no guarantee that a debt-settlement company is going to be able to in fact settle your debts for pennies on the dollar, if at all.” To make sure a debt settlement is the right thing to do in your situation, visit a consumer-credit counseling agency, talk to attorney, and try working out a settlement yourself. Working out a settlement helps you to find out what you can afford to pay and come to an agreement with your creditors.
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