Bankruptcy or Consolidation – which one is better for a debtor

Bankruptcy or consolidation, which one id better for a debtor is just a matter of financial condition of an individual. If you are in huge debt and there is no way to make any plan or talk to any lender and there is no alternative left for you then go for bankruptcy. When you are not eligible for debt consolidation program, in that case you opt for bankruptcy. Again bankruptcy is not so easy process to adopt. There are two major types of bankruptcies, chapter 7 bankruptcy and chapter 13 bankruptcy. Based on your financial condition, you need to first decide which type of bankruptcy is more suitable to you. This depends completely on your finance capacity and assets and investments that you have.
Its not an easy process, its a huge process to understand, keeping the current situation in mind, the federal government allowed the number of people to file bankruptcy who are in huge troubles financially. You have to take care of your credit report because once you file bankruptcy means it remains in the report for ten years to go.
Debt consolidation is a process of making all unsecured loans like credit card debts and other loans into a single loan so that the debtor need not pay multiple payments, but you are only required to pay one reduced payment for your debts. Your credit report may not be so effected as it effects in the bankruptcy method.
So bankruptcy or debt consolidation fully depends on your financial circumstances of individual and best way to approach is to make a better consult with a professional financial consultant.