When it comes to clearing your debts, bankruptcy should be seen as a great last resort rather than an easy first option.
The great thing about bankruptcy is that almost all of your debts will be cleared—credit card debt, personal loans, tax debt, unpaid phone and utility bills and more. The only debts to remain will generally be court-imposed fines and child support payments.
The reason bankruptcy should be seen as a last resort is that it can impose quite limiting constraints on your life that other forms of debt help do not.
Depending on your circumstances, your house could be repossessed and sold, your income could be docked and you could be prevented from traveling overseas in the immediate future. Bankruptcy might also prevent you from working in certain professions or from directing a company for a period of time.
For some people, these factors will not be an issue. To make sure that bankruptcy is right for you, talk to us first and get some sound advice. In many cases, a debt agreement could offer you the relief you need whilst helping you avoid the restrictions that bankruptcy can impose.