Bankruptcy is a very common route that people select to get out of the financial mess they have created for themselves. Most people decide to go for bankruptcy without even deliberating properly about their decision. Foreclosures are the usual triggers of bankruptcy. Bankruptcy can have a negative impact on your financial situation. Your credit history will be badly affected as the stain made by bankruptcy can last up to a decade. A loan modification can be one of the better options than bankruptcy. It will give you more time and a better chance to pay off your loan amount. With loan modification, you can also save your credit history from suffering too much damage.