Is Bankruptcy a Good Way to get Out of Debt? Step #7

I had kept my massive debt load a secret for years. I knew it was wrong and I was embarassed to let anyone know. It wasn't until I was getting divorced that I began share my secret. While confiding my debt to a close friend of mine I learned I was not the only one who had a secret. My friend was in debt too. In fact even more than me. I was in debt $60,000 and he was in debt $100,000.

We both felt overwhelmed by the debt and were equally embarassed at our sisituations. Between my debt and my pending divorce I had contemplated suicide, but learning I was not alone helped me get passed that.

But when it came to our debt we felt hopeless. At one we both thought of bankruptcy as an option. It was kind of like if you jump I'll jump too. In the end we both decided against it. Feeling it was not right to do that to our creditors because we had mismanaged or finances. In the end we both became debt free.

Step #7

If you are not wanting to or able do what it takes to get out of debt and your financial situation seems too hopeless, than sadly bankruptcy may be a way out. Before you file for bankruptcy, be sure to consider the consequences not only for yourself, but for your spouse, family members, and friends. No matter what you have heard, bankruptcy is not a simple solution. Here is why:

1. Your credit will be severly damaged for seven to ten years.

2. You will be required to pay higher interest rates on loans. If you are even able to get a loan these days after filing bankruptcy.

Filing bankruptcy is actually filing a pettition under the federal bankruptcy law. You are much better filing through your attorney rather than doing it yourself. Although, you are certainly able to do so. You and your attorney will draw up a petition listing your assets and liabilities. You submit the petition to a U.S. District Court judge. If the judge accepts your petition, he or she may have some of your assets sold by the court to pay your creditors. The court will then wipe out most of or all of your debts accept:

1. Alimony and child support.

2. Most state and federal taxes.

3. Most federal student loans.

4. Any debt not listed on your bankruptcy petition.

You can learn more about bankruptcy at bankruptcyinfo.com.

Have you thought about filing bankruptcy? Did you go through with it?