Which Should You Do? Consolidate Your Debt Or Declare Bankruptcy?

Debt consolidation or bankruptcy? Which is better for you in the long run? You've accumulated a large amount of debt through credit card purchases, a home equity loan, a large car payment, and a mortgage with a high rate on a house that has lost value. On top of all that, you have some medical bills. Creditors and collectors are calling. You're not answering the phone. They are trying to get you through your family. Your family is mad at you for that.

You feel humiliated that you can not live up to your obligations, but you just lost your job. You do not want to lose your car and your house. That would just make things worse. So, what should you do, consolidate or declare bankruptcy? You might think that the more honorable thing to do would be to consolidate so you can pay your obligations rather than just dump them. Here's the advice of a Woodlands bankruptcy attorney. It is often better to draw the line on the debt and get a fresh start. If you're in Houston stop foreclosure by following this advice.

If you make the decision to consolidate your debt and continue paying your bills, you may find yourself in a bad, never-ending situation in which you pay and pay and pay, and all you're doing is paying interest. If that's all you're doing, you'll be making your debtors rich while keeping yourself in a hole from which you will never emerge. It may seem the honorable thing to do, and paying your debts is a good thing to do. But this course of action can lead to your losing the things you need the most, which are your car and your house. Where are you if you do not have these? You're homeless, but you still have your honor. The bad news is that your honor will not feed your kids.

When things seem hopeless, the best decision might be to bite the bullet and wipe your slate clean. Nobody wants the stigma of bankruptcy, but sometimes it is a hard decision that will leave you better off sooner through a fresh start rather than later as you slog through the swamp of interest payments. Here's the thing about bankruptcy: During the process, you are normally allowed to keep your home and your car.

These are the two most basic things you need. You have to have a place to live, and you have to have a way to get to work. Of course, through this bankruptcy process, you need to have a lawyer. The lawyer can help you to sort out what you can keep and what you owe. He or she can also help you to recover your good credit rating in the shortest amount of time. Did you know that this period can be as short as two years?

So, as you can see, time and thought must be put into the decision of whether you will consolidate your debts or declare bankruptcy. And, remember, a good bankruptcy attorney is your best ally in making this decision.

Source by Chuck R Stewart

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