Many people are struggling to regain their financial footing and don't know if there is any way out. They have looked at bankruptcy as an option, but they are scared of what the future holds. Is there any way out of overwhelming debt, or is bankruptcy the only option?

Well, bankruptcy is certainly not the only option, but it really depends on your particular circumstances. No one can decide that but you, although the help of a professional financial advisor and bankruptcy attorney would be helpful.

One lawyer told me that you should ask yourself whether you can expect to pay off your debt in the next two years by making reasonable adjustments to your budget. In other words, can you make financial sacrifices and pay off your debt in the next few years without living in what for you would be unreasonable conditions? Now I know the answer is subjective, because you may have different standards of living in your mind as you read this. However, the point is that you have to make reasonable sacrifices.

Simply adjusting your budget and not using your credit cards to purchase something you cannot afford should go without saying. In addition, you may consider debt negotiation companies that can help you settle your debt with the credit card company. However, the downside is that you would have to, in many cases, stop paying your bills for several months and damage your credit significantly in order to get the credit card companies to take notice and agree to a settlement.

If you're at the point where your credit score is the least of your worries, you should at least consider bankruptcy as a solution. Speak to a bankruptcy attorney about your options, and remember that you are under no obligation because you are the ultimate decision-maker.