There are numerous reasons why we might find ourselves facing a mountain of debt, it could be because of failed business ventures, unemployment, bad spending habits, and so on. If you can meet your monthly payments then you’re good to go, however, if you are struggling to pay off your debts and are finding yourself in more and more debt, you might need to find other options to save yourself. The most obvious answer might be to file for bankruptcy since it immediately goes into effect and you can get your creditors to stop harassing or contacting you, but, before you make that decision, you should explore other options like major debt relief assistance and so on.
When you file for bankruptcy, your credit score gets affected badly, and it can take a lot of years to improve your credit score. To make matters even worse, the bankruptcy claim also becomes a part of your permanent record and will be there with you for the next decade. This makes applying for insurance, future loans, and even jobs difficult later on. Plus, your assets are not entirely safe, so you will end up having to sell off your assets to pay off the creditors to the extent that is determined by the court.
Applying for debt relief is a safer option since it will end up affecting your credit score at half the percentage of a bankruptcy filing, which is significant, plus it will not damage your future loan prospects as badly either. This allows you to have some dignity, but again, you want to be sure to look into all of your options before you make any decision. At the end of the day, filing for bankruptcy should be done only when there are no other options left.