Chapter 7 Bankruptcy: What is it? How does it work? How much does it cost? These and other questions are being asked by more and more consumers as they continue to be dragged down and bogged down by the weak economy. “Technically”, the great recession has ended. This is according to the results of a poll taken of “top” economists and financial analysts.

But has the recession really ended? It may feel like the recession has ended to the Wall Street firms that have received billions in so-called “bailout” funds from the government (more like “handout” funds), but for consumers on Main Street - no real upswing has been felt. And therefore consumers have the mistaken belief or hunch that bankruptcy can free them from the bondage of credit card debt.

But can bankruptcy really eliminate debt? Or are there superior bankruptcy alternatives today?

The problem with bankruptcy is that it causes more collateral damage than Arnold Schwarzenegger going toe-to-toe with the bad guys in a crystal and wine goblet shop. It can get ugly. Bankruptcy virtually destroys one’s credit record. The bankruptcy filing will stay on the public record for up to 10 full years in many states. During this time it will be nearly impossible to obtain any kind of credit, even for a pack of gum.

The person who files bankruptcy can expect to be required to pay hefty deposits for future home utilities ordered - gas, electric, water, cable, phone, internet, etc. And they could also expect to be passed over for a job, as more and more employers are performing credit checks these days as part of their routine job applicant screening process.

Rather than looking for ways to file for bankruptcy, people should rather be looking for ways to avoid bankruptcy. In this way, the consumer can achieve true debt relief without all the harmful repercussions of a bankruptcy filing.