Is bankruptcy the right solution?
You have messed up badly, and you feel that bankruptcy is your only way out. You do not want to fight your creditors any longer; you do not want to spend sleepless night thinking how to make ends meet; you are tired. Declaring bankruptcy does seem like a simple end to all your troubles.
But is it?
No, it’s not. When you do throw in the towel you are sending out a message that you behaved irresponsibly and you lost your money and that of your creditors. The mark of bankruptcy will remain on your credit report for 10 years, and every creditor will consider you a high risk investment. Ten year is a very long time to bear the repercussion of a mistake.
It’s wiser to use the right to declare bankruptcy very cautiously, and only when every other possibility has been checked out. Look for hand loans, government grants, re-negotiation with creditors, second mortgages and so on – in the end you will find it’s well worth the trouble.
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