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Debt repayment. Is bankruptcy your only option? In many cases no. Several factors figure into the equation but bankruptcy generally is the option of last resort. I live in Canada so the laws may be somewhat different here but the principal remains the same. Personal bankruptcy is not an easy solution to a complicated problem. You do not get to just walk away from your debts. There are implications that go on for years when you claim bankruptcy. I know, because I have claimed bankruptcy. I hate admitting it but the trustee I was working with advised that it was the only viable option in my situation. He was right.

The term "debt repayment" means more than just repaying your debts. It is not used as a way of saying "my VISA bill is here, so I'm going to pay it". It means you are in trouble financially. Debt has to be paid. Whether it is credit card debt, bank loans, student loans or mortgages, someone has to pay it back. If, for instance, you claim bankruptcy because of credit card debt, the credit card companies write this off as "bad debt". However, it does not end there. Someone always pays for it and it is the consumer in the form of higher costs and credit card interest rates.

There are alternatives to bankruptcy. There are also people who will take advantage of others who are panicking because of their financial situation. The very first thing you have to do is take a deep breath and look at your situation realistically. It helps to know that you can contact someone for help. You do not have to deal with your creditors alone but taking that first step, looking at your financial picture, as painful as that might be, is probably one of the hardest things you will have to do. It is very easy to go into denial when you are in a downward spiral financially and keep hoping for a miracle that is not going to appear. Maybe I will win the lottery, maybe the layoff at work will not happen. Things can and do happen. Sometimes we have no control over them and other times it is a mess of our own making. Whatever the case denying that it exists is not going to make it any better or make it go away. Doing something about the situation often makes it feel less overwhelming. The steps you need to take in order to get a handle on your financial situation are as follows:
- Get all of your paperwork together. Bills, overdue notices, unopened bills with "urgent" marked on them, checks, bounced checks, etc. Everything needs to be in front of you so you can get an overall picture.
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