Federal regulations may reduce personal bankruptcy filing by making it more difficult to file, yet may encourage desperate debt solutions.

The new law regarding filing bankruptcy requires people too deep in debt to repay to first attend credit counseling. This rule is to avoid bankruptcy filing altogether. However, in some situations it may make people more desperate to get out of debt quicker and easier. And that quicker, easier way is to negotiate debt settlement with creditors and to write off the unpaid balance, even though it places such people into the bad credit, high risk category which typically denies them new credit for up to seven years. The benefit of debt negotiation, is that it's quite simple, relatively fast, and if your credit is already destroyed or will be for up to seven years anyway, then there's virtually no credit report impact by comparison.

There is yet another choice. For people who can either obtain a co-signer and/or who have equity in a home or auto, may qualify for an anti bankruptcy loan. This isn't an actual name or type of loan, it's using available personal finances to solve a problem without trashing credit report scores.

How to do it: If you have a very good friend or a family member who has good credit, maybe you can talk that person into signing a personal loan for you, either through a cash loan or by using equity in their property. If not, maybe you have a home or an auto with equity, which you could use as collateral and get a refinance loan.

Summary: Before you file personal bankruptcy, negotiate debt settlement or borrow money to repay bills, consider all of your options, pros and cons. Review articles related to bankruptcy, debt negotiation and credit counseling.