When you have a lot of debt, and it seems you will never see the light at the end of the tunnel, it can be hard to figure out which way to go to get your debt and finances under control. The good news is that there are options to help you get out of debt. Choosing which one is best for you will depend on your financial situation, but the voices for eliminating debt are limited to bankruptcy and debt consolidation. Filing for chapter 7 or chapter 13 bankruptcy should be your last choice. Debt consolidation for bad credit a much better alternative.
Bankruptcy can remove all or most of your debts depending on whether you file for chapter 7 or chapter 13 bankruptcy. Under chapter 7 bankruptcy, you will most likely lose a portion of your assets that will be sold to partially repay some of your debts. After some of the debts are paid or partially paid, any remaining debts will be discharged. Chapter 13 bankruptcy involves a court-approved repayment plan over a period of three to five years. After the court-appointed time period has expired, any remaining debts may also be discharged.