Wednesday, August 31, 2011

Bankruptcy Versus Debt Consolidation: Which One is Better for You ...

The economic downturn has caused many people who thought they were in a good financial state to suddenly find themselves drowned in debt. Although bankruptcy is often touted as the best way to get out of debt, there are some situations where a simple debt consolidation could allow you to get back on your financial feet and not worry about the black mark that is brought about by filing for bankruptcy.

Bankruptcy does have its advantages. It allows you to quickly get relief from hounding debt collectors. Filling for a Chapter 7 bankruptcy is probably the fastest way to get out from under a great deal of debt. If you think that bankruptcy is the right course of action for you, contact a Bankruptcy attorney in Minneapolis at 6465 Wayzata Blvd., Suite 780, Minneapolis, MN 55426, (952) 294-0144. A good bankruptcy lawyer will be able to give you personalized advice for your financial situation.

If you are close to being able to pay down your debts, but need a little bit of help from your creditors, a debt consolidation agency could be just the thing you need. They will buy off the debt from your creditors and set up a payment plan that allows you to pay off your debt without worrying about the credit history impact of a bankruptcy. Although there will be a mark that shows you are using a credit agency, this is not nearly as much of a problem for most lenders as having filed for bankruptcy. Contacting a Bankruptcy attorney in Minnesota may be helpful for your situation as you try to figure out whether you need to file for bankruptcy or if you can try to contact a debt collection agency and pay off your debt without the unwanted help of the bankruptcy courts.

Source: http://www.muenchbach.com/business-finance/debt-consolidation/bankruptcy-versus-debt-consolidation-which-one-is-better-for-you

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