Alternatives to Filing Bankruptcy

by : Dean Forster

In today's world, it is very easy for anyone to get into a deep cycle of debt. Credit card companies approve thousands of credit card applications every day. Even those with a bad credit rating are able to avail themselves of credit cards (at high interest rates, of course) and instead of exercising good financial decisions, they start racking up debts, using their credit cards as if it were money.

With the high cost of living today, it would be surprising to find a person who is completely debt free. Today, it is more common for people to owe credit card debts, mortgage, car loans and a host of other debts. Businesses and companies don't make it easy for consumers to become debt free either. Every day, we are bombarded with advertisements, particularly from furniture companies, with the promise that we can have the furniture we want now and not have to pay any interest or start paying until two or three years later.

We are a nation that spends more than what we actually have. No wonder many Americans are deep in debt, with no hope of getting out of the financial mess sooner. Many who find themselves caught up in a cycle of debt and are unable to get out of it look into the possibility of filing bankruptcy. However, there are alternatives to bankruptcy and it pays to look into those first before throwing in the proverbial towel.

Keep in mind that bankruptcy alternatives will not quickly solve your debt problems nor would they give you your credit rating back. However, these bankruptcy alternatives can help you avoid filing for bankruptcy; they can help you gain control of your financial life.

You can speak to a financial advisor, who may be employed by your bank. A financial advisor can help you get your finances in order if you have assets such as a house, a car or valuable electronic equipment. If you do not have many assets, however, this bankruptcy alternative may not be an option for you since you would not be able to meet the financial requirements.

There are many online guides that you can read or download for free, and these could help you in terms of providing you information on the different bankruptcy alternatives you can look into. These online guides can help you evaluate your options and find out what bankruptcy alternative that is suitable to your needs. You can find out more information on filing for bankruptcy and alternatives at

You can also check with government organizations that can assist you in consolidating your debts and making arrangements with your debtors regarding loan payments. These agencies can help you come up with a payment arrangement that your debtors would find acceptable.

Bankruptcy should be your final option, after you have explored and considered all the other bankruptcy alternatives. Keep in mind that bankruptcy will be reflected in your record for several years. Once you file for bankruptcy, you cannot reverse it; it can also affect your future credit rating. So explore the different bankruptcy alternatives available to you and find the best one.