With the ever increasing problems of the economy, more and more people are experiencing financial difficulties because of poor income and excessive amounts of debt! Applying for bankruptcy might seem like a good option if you’re struggling to pay creditors and settle debts, but is it the only solution?
Despite the humiliation that comes from declaring oneself bankrupt, there are number of pros and cons you might want to consider before taking this irreversible step. Although, it provides you with protection against creditors, bankruptcy makes it very difficult to secure credit in the future. If you own a business, home or car, these will most likely be sold to repay creditors and some debts cannot be included in the order.
Other solutions such as individual voluntary arrangements may provide for a better solution and are worth looking into to. For a more detailed look into bankruptcy and whether it applies to your current situation, check out the infographic below.