There is no denying the fact that Chapter 7 bankruptcy is the best way for many people to get their finances back in order.
For example, if you're bogged down by debt, Chapter 7 bankruptcy can help you start fresh in the near future.
However, you don't want to move forward with this until you understand both the pros and cons.
Here are some of the consequences of filing for Chapter 7 bankruptcy:
-- Your credit score will take a big hit. In short, a Chapter 7 bankruptcy will remain on your credit report for as long as 10 years.
-- You may lose some of your property.
-- You will not be permitted to keep your credit cards.
-- A Chapter 7 bankruptcy filing makes it difficult to secure a loan, such as for a home or car, in the immediate future.
-- Chapter 7 bankruptcy does not have any impact on student loan debt, alimony, or child support payments.
-- Once you file for Chapter 7 bankruptcy, you are unable to do so again for six years.
As you can see, there are many ways that a Chapter 7 bankruptcy filing will impact your life. You need to compare these drawbacks against the benefits, as that will help you make an informed decision as to what you should do next.
Only you know if Chapter 7 bankruptcy is something that could improve your life. If you have reason to believe that this is the right decision, don't wait to learn more about the process and where you fit in.
Source: FindLaw, "Pros and Cons of Declaring Bankruptcy under Chapter 7," accessed May 08, 2017