For some people, their debt situation is out of control. They are behind on all their payments, their debts are far more than their income, and even missing a few payments hasn't helped the situation, because now they have additional late fees to pay as well. Is bankruptcy the answer? For some people it can be; however, be aware that bankruptcy can be expensive, it can severely damage your credit rating, and depending on what kind of bankruptcy you file, you can either lose your home or still have to pay your debts over the next three to five years. There are some alternatives. The first is to negotiate with your creditors to lower you interest rate, reduce your payments, or even settle your debts for a portion of the total amount owed. Creditors would generally prefer to help you avoid bankruptcy in which they might receive nothing. There are also credit counseling services, debt consolidation companies, debt settlement businesses, and financial attorneys that can help. However, be sure you are dealing with accredited and experienced professionals who are not among the many con artists attempting to take advantage of those struggling in today's difficult economy.