Taking into consideration the current recession that has not yet come to an end, and recent reports that bank earning will not increase by the end of this year, many people have turned to filing bankruptcy. Such filings have increased 34% year-over-year as of July, 2009.

It is important to note that Bankruptcy should definitely be used as a last resort. Therefore, here are some tips and alternatives, those considering bankruptcy, can read prior to filing. (more…)

Nobody wants to voluntarily declare bankruptcy. Doing so is like admitted you have failed financially and there is also the psychological stigma associated with it which can allow you view yourself in a very negative light. Bankruptcy is a major financial process and especially with the new laws in place, it is not something that you can do just because you are tired of the never-ending calls from your creditors. (more…)

Debt settlement companies can cost you more than you owe your creditors. The basic strategy of a Debt Settlement company is to tell the client to stop paying their unsecured bills (like credit cards) and open a special account and fund it with what they normally would pay their creditors. Over time this builds a “war chest” that the Debt Settlement company can use to negotiate a settlement of the debt often promised to be 40 cents on the dollar. Reducing your debt by 60% can be very appealing particularly to people who have no other option but bankruptcy. (more…)