There are more disadvantages to bankruptcy as against advantages. Also till you don’t learn the debt management lessons by yourself, filing for bankruptcy will not help you. Only when you understand where you erred and take remedial step, you can prevent debt problems later on.
On the contrary, bankruptcy punishes you for falling in large debts. But it doesn’t teach you how to handle your debts efficiently. So it is quite likely that you will still suffer from financial problems despite filing for bankruptcy.
Also bankruptcy damages your credit score for another 8-10 years. In this situation, there are many people who rue opting for this step when conditions improved and yet have a low credit score.
Another drawback of bankruptcy is that your finances don’t remain private. Each and every detail will be made public and you will just have to put up with it.
Moreover, you do not have the alternative of repaying specific lenders in liking. You can opt for credit card debt settlement, lower your unsecured debt by 50% and use the money saved to pay off other loans.
While you can easily get a rebate or ever cause a loss to the credit card company, it is not the same with your near and dear ones. They won’t be glad to see you after you make them lose their money.
Lastly one of the main reasons why you should avoid bankruptcy is that debt settlement is a viable alternative available today. It can be used even when you are on the threshold of filing for bankruptcy.