Bankruptcy carries a very negative connotation, as it should, since it pretty much destroys your finances and credit for quite a long time. This in turn can lead to destroyed families and lives as well. Sometimes people are too impersonal when it comes to money simply because they believe it cant buy you happiness. Im not advocating that money is the root of all happiness, nor am I stating that it is the root of all evil either. Money is an absolute necessity, and an absolute blessing when it is handled properly. Too often we find ourselves loosely handling our credit, bills, and overall personal finances.
Consider the dangers of bankruptcy before you go out and file. There are many complications that we fail to understand before we act. It may seem like an easy way out, you may think that as long as you keep your house, car, and personal belongings its simply wiping all the bad stuff and leaving you with a clean slate. What you often dont realize is that those belongings can be stripped away from you as well. Also, you cant simply foreclose on a home and then go out and buy another one either, you may be reduced to renting and even then they will scour your credit report looking for any red flags. You may find yourself living with a friend or relative, or paying for a years worth of rent upfront in order to simply live somewhere. To go even further, the opportunity cost of tying up funds for an entire year like that can detrimental to your finances as well.
Again, before you make and rash or drastic decisions you need to consider all of your options first. Companies like Debt Free Direct offer alternative solutions to your finance woes. Often times these solutions are much easier on you as the consumer, and on the creditor as well. By exploring all of your options you can at least breathe easy knowing you researched all avenues. I have seen several friends and relatives experience one, and at times more than one, bankruptcy and it isnt a pretty sight.