Markowitz & O'Donnell, LLP
Local609-482-3138
Toll Free866-437-1189

Call To Schedule A Consultation

Do the pros outweigh the cons in Chapter 7?

There is no denying the fact that there are many benefits associated with Chapter 7 bankruptcy. Nobody looks forward to the day when they file for Chapter 7, but they realize that this could be the first step in putting them on a better financial track.

Before you file, you'll want to learn more about the drawbacks. This will give you the information you need to make an informed and confident decision.

Here are some of the primary drawbacks:

-- Bankruptcy will have a negative impact on your credit score for up to 10 years.

-- You can lose property that is non-exempt.

-- You will more than likely lose access to all of your credit cards.

-- Once you file for Chapter 7, it will make it difficult to receive a mortgage for a home (especially in the near future).

-- Bankruptcy does not help with all of your financial obligations. Student loans, child support and alimony are not impacted by Chapter 7 or Chapter 13.

Along with the above, here's something else to remember: you are not legally permitted to file for Chapter 7 bankruptcy if you went through this process (or Chapter 13) within the past six years.

There are both pros and cons of Chapter 7 bankruptcy. As somebody considering this financial plan, you need to compare the finer details to ensure that you're making the right decision.

Once you know exactly what you're getting into, you can decide what to do next. For many, the benefits of Chapter 7 far outweigh any of the potential drawbacks. An experienced attorney can help you determine if this is the right choice for your financial situation.

Source: FindLaw, "Pros and Cons of Declaring Bankruptcy under Chapter 7," accessed Dec. 29, 2016

No Comments

Leave a comment
Comment Information

Markowitz & O'Donnell, LLP
3131 Princeton Pike, Building 3D, Suite 200
Lawrenceville, NJ 08648

Toll Free: 866-437-1189
Phone: 609-482-3138
Fax: 609-896-3184
Map & Directions

Send Us An Email.Get Started Today.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy