There is a whole lot of negativity associated with the word bankruptcy.
The words "turning bankrupt" have always been associated with being broke.
Do you really want the rest of the world to address you as bankrupt? There could be many other good ways to seek debt relief.
It is always better to survive and fight another day.
Bankruptcy is a legal procedure to help out people in financial distress.
It gives out debt relief within the framework of the specified rules.
Bankruptcy proceedings require you to first make an application and attend counseling session to confirm your eligibility.
There are two chapters under which you can apply for bankruptcy, the Chapter 7 and Chapter 13.
Bankruptcy provides protection for your current assets and future earnings.
Under chapter 7 you can get a fresh start and enjoy protection as specified in the state laws.
Your home and personal assets are protected under this clause.
But in many cases if you do not qualify for Chapter 7 you are asked to file bankruptcy under Chapter 13.
Under this chapter your future earnings are tied down to clear your debt.
Other disadvantage of bankruptcy is it being subject to state laws.
In some cases no homestead protection is provided.
This means that even your house could be auctioned to clear the unsecured debt you have accumulated.
The other issue is all types of debt not being discharged by bankruptcy.
If you have maxed all your Credit cards the debt can not be cleared by bankruptcy.
Under these circumstances it is better for you to go in for a debt settlement.
You can negotiate your debt with the creditors and get is reduced by almost 50 percent.
You pay the remaining amount in one go.
This is the fastest way to eliminate debt.
So go in for a debt settlement to obtain debt relief.