The process of declaring bankruptcy always requires a great deal of thought. Some think that bankruptcy is the only way to be Debt Free, but this is not always true.

Bankruptcy is a very public process; you will have to surrender control over your finances and be prepared to lose your home and other assets of value. Although bankruptcy allows you a way to be debt free in 12 months, this is not always true as a BRO could mean that you are repaying your bankruptcy debts for a much longer period of time.

Always seek expert advice before declaring bankruptcy or firmly deciding that bankruptcy is the only way to be debt free. There are a number of debt free solutions available which allows you to avoid some of the long term effects of bankruptcy, including:

Debt Management Plan – A Debt Management Plan is an informal arrangement with your creditors. On your behalf, we can negotiate a lower monthly payment that you need to make to your unsecured creditors. You make the monthly payment to us and we will distribute this between your creditors.

IVA – An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors where you agree to make set repayment for a typical period of 60 months. At the end of this arrangement, any unpaid debt will be automatically written off. With an IVA, many clients are often debt free in 60 months.

Remember, bankruptcy is not an agreeable option to become Debt Free for everyone so always consider your options. Speaking to a Debt Free advisor could help you understand what other options you have available which allow you to become debt free without going through the process of bankruptcy.