Finance Classic - Financial News

Both bankruptcy and credit counseling are two different ways of making relieve the stress of debt. So you need to understand the difference between the two clearly before making any decision because any wrong decision can make your financial condition worse.

Those who are having problem in debt and can’t find the way out, credit counseling program will help them to get the solution by giving important suggestions. Certified credit counselor will make suitable plan to deal with different debt for different person’s financial position. They often provide services for free and try to educate you how to come out of bad financial conditions with proper plan. They also take classes or seminars on debt management. Credit counseling program don’t erase debt but it makes plan to deal with debt. This program allows people to reestablish their credit.

On the other hand bankruptcy is completely different concept. It will allow you to erase your debt in most of the times. Bankruptcy 7 and 13 are most popular chapters regarding this. If you want to file bankruptcy then you have to go either for chapter 7 or chapter13 but it is not up to you to select the chapter, your financial condition will tell it. Before taking any final decision you must go through the articles which will tell you all possible problems that you can face in future if you file bankruptcy. You can’t build your credit for 10 years from the date of filing bankruptcy. Bankruptcy may give you instant relief from the harassment of collection agency and creditors but the effect of it can be observed in future. Filing bankruptcy is also very expensive compared to credit counseling.

So take your time before making any important decision which is related to your future. Think which is important to you right now, instant relief or relief steadily in long run.