Bankruptcy is characterized when the sum of your assets and credits (estimated in a fair price) does not cover the total amount owed; in other words, when you owe more than what you have.
You must exhaust all your resources before filing for bankruptcy and submitting yourself to creditors’ competition.
Remember that you can always make a request for debt restructuring with the lending institution or the collection agency; otherwise, they may initiate legal action against you. If the lawsuit is favorable to the institution, your properties could be seized in order to settle the debt.

• Remember that debt does not end with death; although, some insurances cover debt pertaining to house and car loans, and even credit card debt.
• Credit isn’t extra money. It is merely an extension of the period you have to pay, for reason, over spending can be harmful.
• Credit cards payment period varies from one to 90 days. At the end of the grace period, the lending institution considers the debtor as a liability, and proceeds to collection procedures. This will have a negative impact on debtor’s credit history.