If you are facing personal bankruptcy, you may want to consider looking for alternatives before filing. Filing bankruptcy puts a mark on your credit score that will remain there for at least seven years, if not longer. If you can deal with your debt without filing bankruptcy, you may be able to protect your credit rating a little better.

First, think about why you want to file personal bankruptcy. Is it due to the creditors that are repeatedly calling and harassing you? If this is your reason, you may be able to stop the harassing phone calls without filing bankruptcy. Both state and federal laws protect you from these types of calls. Bill collectors are not allowed to threaten or harass you when calling.

Your creditors stand to lose all of the money they lent you when you declare personal bankruptcy. If you have gotten to that point, they may be willing to work with you so that they can get some of their money. For instance, they may be willing to lower your monthly payment amount or interest rate to give you the chance to get caught up with your debts.

Of course, talking to your creditors is scary, so you may want to enlist the help of a third party. Credit counselors can help you design a repayment plan and talk with your creditors for you. This will help you work your way out of debt without having to negotiate directly. The United States Trustee's website has a list of all of the government-approved credit counselors. You will have to go through credit counseling if you are going to declare personal bankruptcy anyway, so why not start the process before filing to see if you can get out of going to bankruptcy court?

If you have tried these alternatives and still find that there is no way you can get out of your debt problems on your current income, it may be time to file for personal bankruptcy. Just be sure you have tried to work your way out of your financial hole on your own before filing. Remember, filing for bankruptcy will have a long-standing affect on your credit rating and financial health, so it is not a decision to take lightly.