More people than ever before are staring down the barrel at bankruptcy. With consumer debt at an all time high, and the ruckus with the sub-prime mortgages many people are stuck with not many options to get debt relief, and most people feel bankruptcy is their only recourse. In this brief article I will list some of the negative effects of going through a bankruptcy and offer an alternative to filing for bankruptcy.

1. Many debtor filing for bankruptcy get a feeling of being defeated and embarrassed. Your detailed financial affairs will be made available to the court and creditors.

2. You as the debtor do not have much of any say in how much you will be required to payback to the creditors, this decision is no longer yours but that of the courts.

3. You may lose valuable or treasured assets, and may even lose your business if you have one.

4. Payments may be deducted from your paycheck for up to five years.

5. Consumer debtors are required to attend credit counseling within 180 days of filing the petition for bankruptcy.

6. Debtors must also complete a personal financial management education before they can obtain a discharge.

7. A chapter 13 will remain on your credit report for seven years, and a chapter 7 for ten years.

While for some people bankruptcy will be the only option available, for many credit card debt settlement can be a much better option. Bankruptcy should be viewed as a last resort if nothing else can work. Debt settlement is by no means the magic bullet and does come with its respective pro’s and con’s, however for many people it is a savior from going into bankruptcy.

Author's Bio: 

Steve Martin is a Debt Analyst with the US Consumer Advocate. Which offers a credit card debt relief program for people looking for debt relief.