Bankruptcy is one option to relieve yourself from credit card debt but should only be used as a last resort. Many people have filed for bankruptcy because they were not
informed of the alternatives to eliminate credit card debt without bankruptcy. If you have credit card bills that are far beyond what you can pay out each month, then you should look into alternative
options such as refinancing loans,debt consolidation loans or enroll in a debt management plan.
In order to decide the best option for your situation, you should seek professional advice from a credit counselor. Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems.
Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs.
If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP can negotiate a out of court settlement with your creditors. These negotiations can get results that make everyone happy, because the creditor will get their money back, and the debtor will get reduced interest rates with more affordable monthly payments without having a bankruptcy on their credit report. If your credit counselor recommends you enroll in a debt management program, you will be required to deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors.
If you need to file bankruptcy to eliminate credit card debt or other loans, then by all means contact a bankruptcy attorney, but take the time to become aware and to learn about the alternatives to bankruptcy.