Debt is strangling you and your family. Does your stomach twist into knots when you peer into the mailbox? How about when the telephone rings, do you check the caller I.D. and try to screen the collection agencies? Do you find yourself juggling the bills, paying off one and postponing another till it's overdue? These hopeless feelings carry into all of life; the family notices the strain. You are short tempered and lacking the energy or desire to do anything more than just the minimum to make it through the day. Bankruptcy, that step you never thought you'd take, begins to look pretty good. The creditors will stop calling, the credit card statements will cease. You could start over. This does sound good, but before you take that step, think through very clearly and carefully the serious ramifications of bankruptcy. There may be more results to filing bankruptcy than you realize. There are certainly more affects than just the bills magically disappearing. Before you file, reconsider. And read on. Following, you will find a few of the results of bankruptcy.

Credit Your credit report will show a bankruptcy for up to ten years. You may not be able to borrow money during that time, or if you can find a creditor who will loan you money, you will pay higher interest rates. Do you want to purchase a house or a car within the next ten years? If so, the larger payment amount from the higher interest rate may actually cause you to pay back more than you have been forgiven through bankruptcy. Think about how much has happened to you in the previous ten years. Have you gotten married, divorced, moved, had children? What will the next ten years be like? Do you want the poor credit rating affecting you during the upcoming life changes?

Employment Employers will not look favorably upon a bankruptcy in your history. Do you want to change jobs in the next ten years? A bankruptcy may keep you from being hired. Actually, a bankruptcy may affect your job prospects for the rest of your life. Even after the bankruptcy is cleared from your credit history, prospective employers may ask you about any bankruptcy in your history and it just may cost you your dream job.

Guilt Most people will carry a certain amount of guilt over a bankruptcy. Most Americans want to pay their bills. If you have certain bills wiped out through bankruptcy, you most likely will carry guilt about it.

The Problems Don't Go Away For most of us, we don't get into financial problems overnight. We develop habits over a long period of time. We spend more than we earn. We take risks and gamble what we can't afford to lose. After the debts disappear through bankruptcy, the habits we've developed don't magically change. The next day after filing, we are still the same people we were before, Unless we somehow make significant changes in our habits and lifestyle, a few months or years from now, we'll be right back to where we started with more debt than we can handle. Don't discount this point. Have you ever lost weight by dieting only to gain it back again? You get the point. In dieting, it is necessary to make permanent lifestyle changes in order to keep the weight off. Like dieting, changes in our lifestyle of handling finances will be necessary to keep the budget in order. So if you want to reconsider bankruptcy, what are some options?

Fix the Leak For years I have worked as a plumber. When I receive a call for water dripping from a ceiling, I can't just fix the ceiling. I first must locate the source of the leak and repair it; then, and only then can the ceiling be fixed. Find the leak in your budget. Get help to do this. Find a reputable financial counselor to assist you in this. In order to find one, ask around. Ask friends, a pastor, a bank officer; someone will know someone who does this. Find the leak and fix it. Figure out where you are spending more than you should.

Options A good financial counselor/advisor should also be able to assist you in finding alternatives to bankruptcy. You might have to consolidate some loans. You may have to sell some things. Maybe you'll have to cut down to a bare bones budget. Consider a third party debt negotiator who can work with your creditors to arrange a pay back schedule. If doing all of these things can prevent bankruptcy, the short term pain of crisis financial dieting would be well worth avoiding the long term pain of bankruptcy.

Sometimes bankruptcy is the only viable option left. After you have exhausted all avenues of digging out of the financial crisis and bankruptcy is all you are left with, then you may want to choose the bankruptcy option. But before you do file, be sure that you have examined the alternative options. You may just save yourself a lifetime of added difficulty and regret.

For more information about options to bankruptcy check out my website at www.avoidchapter11.info

The author does not intend this article to be a substitute for legal advice. If you seek legal advice, please inquire with a qualified legal professional.