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"We were approved for a IVA with the help of Debt Response and we are now about £950.00 per month better off and in 5 years time we will be debt free. We advised some friends to approach Debt Response as well and they have been helped in the same way as us."
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Three Questions to Answer to Know if Bankruptcy is Your Best Route

One of the dangers that can happen if you get over your head financially and cannot pay your bills is panic. The specter of what might happen if you begin to default on your credit accounts can cause fear and desperation to set in. And when we act out of fear and desperation, we will probably not make the right decision about how to resolve the problems we face.

That is why it is best to take some time and calm your fears when you have a dire financial situation so that you don't jump to the most extreme solution too quickly. That most extreme solution, short of turning to a life of crime, is bankruptcy. Yes, bankruptcy is one solution to your out of control debt problem. But it is not the only solution. So before you allow fear and panic to drive you to the most desperate financial move you can make, ask yourself a few questions to see if you may have other options.

Have you reviewed all of your options?

Bankruptcy is a last resort and there are numerous other routes you can take rather than to go for a bankruptcy that could result in long-term damage to your financial life. Before you get to the level of financial crisis, you should consider all the available options for resolving your debt. Many times if you talk to your credit card companies, you can work out an arrangement to so they can give you some financial breathing room until you can get new revenue streams coming in. On top of that option, you can consider debt consolidation, debt settlement or debt management using a third party company who can help you get your financial life in order.

Will your debts be resolved by bankruptcy?

The first step of getting organised to address a difficult financial problem is to assess your debts in detail to determine how much you owe and what kind of help you need to be able to begin to resolve that debt. Bankruptcy is an attractive option because it wipes out all of your credit card debt and gives you a clean slate. But there are debts that will not be resolved by bankruptcy. Examples include student loans or tax related debt. If those kinds of debts make up the majority of your problem, bankruptcy won't help you that much.

Who have you talked to?

When you start to take the steps necessary to declare bankruptcy, you will need the help of professional advisors who know the ropes to make that big financial change happen for you. But before you set the wheels of bankruptcy in motion, it will pay off to get some consultation with a debt management professional and/or with an expert in the area of bankruptcy. Even if you have to pay for an hour of their time, what you learn from these consultations will benefit you tremendously in making the right decision about your financial future.

If you'd like to speak to a professional bankruptcy advisor for free call Debt Response now on 0800 781 7878.

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