Before you make any decision, research your bankruptcy alternatives; bankruptcy-alternatives-information.com is a good place to start. Here are your bankruptcy alternatives:
First, work it out yourself. Start by making a personal budget to see what you spend each month. Then cut your spending to free up cash so you have more money to repay your debts.
Second, consider a debt consolidation loan. If you qualify, you may be able to borrow at a low interest rate to repay your high interest rate debts, such as credit cards.
Third, if you can't do it on your own, consider credit counseling. A non-profit credit counselor can review your options and help you make a budget and stick to it to repay your debts. They can even negotiate with your creditors.
Fourth, if you have more debts than can be handled by these options, consider a Chapter 13 Wage Earner Plan if you live in the United States, or a consumer proposal if you live in Canada. These plans give you court ordered protection, and time to repay your debts, without the threat of having your wages seized.
If none of these bankruptcy alternatives are options, your final option is personal bankruptcy, but it should only be considered after you have considered all other options, so do your research today, and decide for yourself which option is best for you.
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