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Should I File Bankruptcy vs. Using a Bankruptcy Alternative?

As discussed, filing bankruptcy is no longer as simple as it once was. However, to some people in very bad financial situations, it often is the only option after exhausting all other bankruptcy alternatives.

“So When Should I File Bankruptcy?”

Honestly, every situation has to be evaluated on its own terms but in general, if you are facing huge amounts of debt and your income is either tiny compared to your monthly payments or you have no income at all, then bankruptcy may be your only option. Your ability to qualify for the faster and easier chapter 7 bankruptcy also depends on what state you reside in.

The most common bankruptcy scenario involves medical bills which can pile up suddenly and dramatically after an unexpected illness or accident. A person without adequate health insurance who suddenly falls very ill, can rack up medical bills in the tens or hundreds of thousands of dollars in a relatively short period of time.

This situation is one where bankruptcy can be inevitable. However, if you just find yourself in debt as a result of spending more than you can handle and have racked up excessive credit card debt you want to look into debt settlement if your debt is over $10,000 or debt management if your debt is less than $10,000.