For centuries, countries all over the world had something called "debtor's prison." When someone was unable to fulfill their obligations, they would be placed in jail if they weren't making reasonable efforts to resolve the issues at hand. In this day and age, not paying your debts will only land you in jail if the debt was secured by fraud. Otherwise, it's up to the borrower to find a way out. If they run out of options, they can file for bankruptcy protection and attempt to get all their debt discharged. Of course, it comes with consequences. One of those consequences could be considered a 7-10 year sentence in "credit prison." Truth About Bankruptcy in America As a result of one of the worst recessions in American economic history, personal …show more content…
American society is set up in a manner that makes credit availability a key ingredient to living a normal life. Given the damage bankruptcy does to one's credit, the likelihood of buying a home or new car is essentially eliminated without taking on a high-risk loan that carries unfriendly terms. The individual will most likely have great difficulty finding sources of cash if an emergency arises. Without realizing, even employment opportunities might go to waste since today's employers are putting more focus on an individual's ability to handle responsibility, something a bad credit score shows could be a problem. For the average American, these are significant issues that must be considered. Avoiding Bankruptcy Before jumping into the deep end of the pool with a bankruptcy anchor around your waist, you might want to consider talking with a debt management company like Rescue One Financial. A debt management company's goal revolves around helping clients do everything they can to avoid bankruptcy. Among the services they provide are debt management training, debt consolidation loans and debt settlement negotiations. Debt Management - The fact your finances are in such disarray is proof enough you could use some pointers on how to manage your debt. A debt management company will take the time to educate on the importance of budgeting, avoiding the use of credit cards and how to get value from your money through things like smart shopping and