For many people in financial turmoil, the personal bankruptcy process can be a light at the end of a very dark tunnel. A bankruptcy claim can put an end to threatening calls from creditors, harassing letters and the embarrassment that financial failure brings with it. With that said, the act of filing in itself is not something that should be taken lightly. There are a variety of consequences that accompany the process that should be taken into consideration before you sign on the dotted line. The following article will outline some of these considerations so that you can arm yourself with the information you need to make the best possible decision.

If you've watched any amount of late night television, then you've likely seen and heard the promises that some companies make about getting out of debt quickly. Statements like "total debt elimination" and "easy financial repair" would make some believe that the bankruptcy process is nothing more than a simple procedure that folks go through every day. Of course, that is simply not the case. While bankruptcy can help you to eliminate a certain portion of your debt, it doesn't do so without some real costs and consequences. Filing for bankruptcy can be stressful and time consuming. You will be asked to gather detailed information about your assets, liabilities and your current household income. Such information will be used to determine your eligibility for filing and will also be supplied to your creditors, giving them the option to go after you in court to seek repayment.

Even if you get approved for filing, the bankruptcy process itself is lengthy (up to 8 years) and will do a number on your credit score. In fact, you will find it difficult to secure any type of decent financing while a bankruptcy remains on your record. You will also be required to spend several hundred dollars just to file, which is in addition to any money you might spend for legal representation or supplemental financial advice.

As you can see, there are many things to consider before you decide that going bankrupt is the best option. Although you may decide to go through with the process, you should first take the time to properly evaluate your situation and some of the many alternatives that exist for financial repair. Speaking to a qualified financial professional is highly recommended, as doing so will provide you with the perspective you need to make the best possible decision.