Some people believe that debt consolidation companies or debt settlement plans can help them avoid bankruptcy, and in some cases, they may be able to do so. But what these companies are unlikely to do is present bankruptcy as one of your options if you are in financial trouble. In some cases, however, bankruptcy might be the right option. While with debt consolidation or settlement plans, they promise that your debt will be restructured and you'll have lower interest rates and smaller payments, they may not be able to deliver on those promises, and even if they can, you still have to pay the debts. With bankruptcy, while not all debts can be written off, some can, and you will be free from the debts, your creditors, and their persistent phone calls. Of course, there is a long-term downside to bankruptcy, limiting your ability to get credit for years to come and even hurting job opportunities and your ability to obtain security clearances. If you are in serious financial difficulty, it is best to consult an attorney who can present all the options and help you make the best choice to meet your financial needs.