When you find yourself faced with an overwhelming amount of debt, your emotions may make you feel that filing for bankruptcy is the only option available to you. However, there is an alternative to debt help bankruptcy and that alternative is a debt settlement program. There are many reasons why you should consider an alternative to bankruptcy, however we will simply highlight a few of them for you here:
- Bankruptcy can leave a terrible stain on your credit report for ten 10 years or more. By going through a debt settlement company, your credit report is restored in three years or less.
- A bankruptcy can make it difficult for you to get an affordable interest rate when you try to buy a home or a car or apply for some other form of credit.
- A bankruptcy can have a negative effect on your ability to be hired. Employers view people who have filed for bankruptcy as “risky.” By using a debt settlement company, you are showing you are committed to paying back your creditors.
- Your insurance company(s) typically checks your credit report two times/year. There is a good possibility your that your insurance rates will go higher, as you will be viewed as someone who carries more risk with them than others.
- Creditors are usually more reluctant to extend further credit to you if you file for bankruptcy. Therefore, if you need to apply for credit with a bankruptcy on your credit report, if approved you will definitely pay between 7 to 10 percent higher in interest rates, versus someone who does not have a bankruptcy against them.
- If you do qualify for the type of bankruptcy that wipes out your debts (a Chapter 7 “liquidation” bankruptcy), you’ll be required to sell off all your property that isn’t protected by law.
- Bankruptcy can be embarrassing and damaging to your reputation. There’s a negative social stigma associated with bankruptcy that can follow you around like a dark cloud for years.
For Christians especially, you have to determine if filing for bankruptcy is, morally, ethically and legally the correct road to take if you are experiencing a financial hardship. In fact, in the book of Romans 13:7 it specifically states: “Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed.”
Bankruptcy is a very serious decision, with consequences that can last for a long, long time. Here at Nationwide Debt Reduction, we recommend that you consider bankruptcy only as a last resort.
If you’re thinking of filing for bankruptcy, we suggest you contact one of our professional debt advisors first, before making any decision. You can reach us toll free at 1-800-890-6658 between the hours of 8:00 am and 5:00 pm PST. We are located in the Phoenix metropolitan area and would happy to educate you on a debt relief program before making any rash decisions.