Have you worked hard to find a solution other than debt consolidation bankruptcy? There are times where you might have tried to consolidate your debts in the hopes that you would not have to file bankruptcy. Unfortunately, it does not always work. Sometimes life seems to continually throw obstacles in our path even when we are trying to clear a debt. It might be a medical issue that comes up or a car that cannot be repaired. Whatever the problem is your last solution should be debt consolidation bankruptcy.
If you can find any other way to take care of your consolidated debts you should. There are a number of reasons why debt consolidation bankruptcy needs to be a last resort. When you go through a bankruptcy it will harm your credit scores, credit history, and remain on your history for at least seven years. There are some companies that will see a bankruptcy and refuse to give you any financial help.
It is hard to repair your credit after a debt consolidation bankruptcy. There are only a few options open to you like a bad credit loan. A bad credit loan has high interest and it can be highly costly to you and your family. For those who have suffered debt it can put you right back in that tough situation.
You will discover buying a car, getting a mortgage, even getting a line of credit is difficult with a debt consolidation bankruptcy even after four years. Companies will always see you as a risk even if you have had a clean record since the debt problems. It may weigh on your conscience or just make you feel stressed out to know that you had a bankruptcy and worse that it can affect you for years.
However, if it is your only option because you have exhausted all others and spoken with a debt management company there are certain aspects like buying a home before a bankruptcy that can help you. You may find the mortgage is a little better than if you had a bankruptcy, and the courts cannot take away your place to live.