Bankruptcy. The very word sends chills down the back of most people. Yes indeed, it’s a move that damages your credit and will remain on your credit report for 7-10 years, depending on the type of bankruptcy you file. It’s a drastic measure to take, but the truth is that sometimes it is the best option, many people who reicieve debt advice often go bankcrupt as it can be the best option. There are a few very important questions to ask yourself when considering bankruptcy. First, be realistic and figure out how long it would take to pay off the debt you currently owe. Excluding your mortgage, if the honest answer is more than five years, you may want to consider bankruptcy. Also, if the debt in question is just too large to pay off without compromising your ability to provide shelter and healthcare for your family, then a fresh start is what you need.
While many consider filing for bankruptcy to be shameful and embarrassing, it is far worse and ultimately far more damaging to spend the next ten years throwing good money after bad. Debtor’s prisons were eliminated for a reason, to give people the opportunity to start over and provide for their families. So do a bit of soul searching, and examine the mistakes you made that got you to this point (yes, at least some of it is your fault) and move on for the sake of your family’s future. And remember one thing, once you file for bankruptcy you cannot file again for another 4-8 years, so get your spending habits under control, and set some worthy yet realistic financial goals. If you can do this, it will all be just a bad memory in a few years. Good luck!