 TITLE: Bankruptcy or Debt Consolidation: Which Is Better for You? CONTENT: Is Bankruptcy or Debt Consolidation a Better Option?\n----------------------------------------------------\nIn light of the potentially devastating consequences of bankruptcy, debt consolidation is always a preferable alternative, assuming you're eligible to do it.\nDebt consolidation depends on your ability to obtain new credit in the form of a loan, credit card or revolving account. If high debts are making bankruptcy a practical consideration, you may no longer be in a position to secure a new loan or card you can use to consolidate your debt.\nAnd while a HELOC may be an option if you own a home, you won't likely qualify if, like many bankruptcy candidates, you've missed one or more payments on your primary mortgage. If you do qualify for a HELOC, take care to ensure that you can keep up with the payments, both during and after the draw period, or you'll be putting your home at risk.\nFinally, even if you qualify for a debt consolidation loan but know you won't have sufficient means to pay it or your other bills, then it may be time to think about bankruptcy as your best option.\nBankruptcy, in other words, is the clear choice to make if debt consolidation and other measures such as a debt management plan aren't possible, or viable over the long term.\nThe strong negative effects of bankruptcy mean you should always consult with a lawyer before pursuing that option. But if you cannot use debt consolidation or other strategies to bring your debt under control bankruptcy, despite its severe consequences, may be worth it if they allow you a financial fresh start. END