Bankruptcy vs debt consolidation, which one is right for your current debt problems?

If you’ve ever found yourself struggling with repayments to your credit cards, then you’ll know how quickly the debt can grow.

Melanie Taylor | Debt Management

The bad economy has put so many people in the position of losing their homes that many are not sure which way would be better foreclosure or bankruptcy. Decision-making is not just a matter of yes or no, it is not that simple. When a mortgage lender ceases to receive its regularly scheduled mortgage payments, it will file a foreclosure action.

Anthony Dean | Bankruptcy Basics

Bankruptcy is an ugly word in the financial world. But many people see it as their only way out of financial trouble. Too often those having money problems think that bankruptcy is a cure all for their financial woes, and move to file for bankruptcy long before they consider all of their options. The problem with bankruptcy is that it’s not the fix-all that some would hope. First and foremost, it ruins your credit rating and history. An average bankruptcy remains a black mark on your history for around seven years, severely affecting your ability to purchase a home, a car or even rent an apartment.

Art Gib | Bankruptcy Basics

Are you trying to avoid bankruptcy? To avoid bankruptcy it is critical that you contact an expert financial counselor, lawyer or an accountant. Your creditors must be kept informed and the more you communicate the better the outcome will be although it is common for people trying to avoid bankruptcy to avoid their creditor’s phone calls as well.

Renee Dunn | Bankruptcy Basics

Creditors may file a bankruptcy petition against a debtor (”involuntary bankruptcy”) in an effort to recoup a portion of what they are owed. In the majority of cases, however, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the bankrupt individual or organization). To reduce debt, the most obvious solution is to reduce monthly spending to allow extra cash flow to service debt. The creditors have 45 days to accept or reject the consumer proposal. If the proposal is rejected, the debtor may have no alternative but to declare personal bankruptcy.

Chris Esposito | Bankruptcy Basics