> You only have a few options:
  1. Credit Counseling – best for your credit, can you afford it?
  2. Get a loan – Behind or over-extended, can't do it.
  3. Bankruptcy – Rather have a 13 or Settlement?
  4. Pay creditors directly – If your pay forever plan was working, you wouldn't be looking for help.
  5. Debt Settlement Group


  • Did you know that you have to report that you filed Bankruptcy forever, on things like applying for certain jobs or on insurance forms? And the creditors you file against never forget! It also stays on your credit report for 10 years from date of discharge.
  • In our experience we have seen 2 main types of Bankruptcy: Chapter 7 and Chapter 13. Chapter 7 wipes out your debt, 13 is a discounted repayment plan.
  • If you have committed to go ahead with Bankruptcy, a chapter 7 may be best. However, sometimes you cant qualify for a 7 if you own a home or make too much money and you may be forced into a 13.
  • We have been asked, why would someone want a 13 and all the negative effects of a Bankruptcy when you could use a Settlement program?
  • *It is best to speak with an attorney regarding your bankruptcy options and how it may apply to your situation.

Bankruptcy is a legally declared inability or impairment of ability of an individual to pay the creditors. It helps individuals repay their debts under the protection of the bankruptcy court or wipe out their debts altogether. People who follow the bankruptcy rules receive a discharge — a court order saying they don't have to repay certain debts. Recent laws have made it substantially harder to take bankruptcy as a way out. The new requirements make it more difficult to erase debts by filing for bankruptcy.

Personal bankruptcy is generally considered the debt management option of last resort. Filing for a bankruptcy has serious consequences and should not be entered into lightly as its effects are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to apply for future credit, buy a home, get life insurance, purchase a vehicle, etc. Additionally, most people don't realize that it will stay on your court records for 20 years. For the rest of your life, any time you apply for a job, loan, or various types of insurance, your bankruptcy may have a negative effect on your eligibility. Although bankruptcy may offer a fresh start for individuals who have no other options, it should only be used after a careful consideration of your options. Many people choose to avoid bankruptcy. *Nothing on this page or website should be considered legal advice. Please consult a Bankruptcy Attorney for complete details.

Avoid Bankruptcy

Many people think of bankruptcy as the easy way out of debt, but there are severe consequences for filing bankruptcy. If you are considering declaring bankruptcy, remember that your credit history will be negatively impacted for the next 7 to 10 years, which can make it difficult to apply for new credit, get a job, or obtain some types of insurance. In some cases, filing for bankruptcy will not allow you to eliminate all your debts—but you’re still left with the financial consequences. You end up dealing with all of the negative aspects of bankruptcy without benefiting from any of the positives. Many people really want to avoid bankruptcy.

Bankruptcy Negatives

•   Above Average Wage – If you earn more than the average wage, you may be required to file for Chapter 13 Bankruptcy, which will require you to hand over all of your disposable income. You will only be allowed to keep enough money to pay for necessities as based on national and county statistics. So if you have a nicer than average car or home, you may be required by the courts to sell your house or car in order to free up money to repay creditors.

•   Strict Repayment Schedules – Courts also tend to be very strict on their repayment schedules. If you miss payments the court can force you to repay all of the debt. There are many reasons why a program may not be completed, but regardless of whether you complete the program, the bankruptcy remains on your credit report for 10 years.

•   Loss of Assets – The court may force you to sell some of your assets in order to make larger repayments against your outstanding debts. This means that you might be forced to sell your home or car in order to pay off debts if you declare bankruptcy.

•   Fraudulency – If a creditor can prove to the courts that you had no intention of meeting your agreed upon payments you face yet another problem in bankruptcy. If a lender can show that your case was fraudulent, you will have to repay the entire debt and still end up with a bankruptcy on your account.

If you are an above average wage earner, own property or a car, or it can be proven that you have fraudulently missed payments bankruptcy may not provide you with the fresh start you are looking for. If you are truly serious about paying your debts as quickly and efficiently as possible, you may want to consider a debt settlement program. Debt Settlement Group ( DebtRX ) provides a debt settlement service that  will negotiate with your creditors to settle your debt.

For a free confidential consultation on debt relief options, other than bankruptcy, call us toll free at

*Nothing on this page or website should be considered legal advice. Please consult a Bankruptcy Attorney for complete details.