No one dreams of the day when they will file for Chapter 7 bankruptcy, as this means something has gone wrong in regards to your finances.
If you come to realize that Chapter 7 bankruptcy could help your financial situation, it makes sense to learn more.
While you focus on the benefits of Chapter 7 bankruptcy, don't overlook the potential disadvantages. Here are some things to keep in mind:
- Chapter 7 bankruptcy will ruin your credit. With the ability to remain on your credit report for up to 10 years, you'll have to find a way to work around this in the future.
- You can lose property. While you won't lose everything when you file for Chapter 7 bankruptcy, it's possible you could lose some property.
- You will lose your credit cards. This may change the way you approach your finances, but it can also help you avoid another financial disaster.
- Chapter 7 bankruptcy makes it difficult to secure a loan. If you want to buy a home or car in the future, for instance, a Chapter 7 bankruptcy on your credit report will make it difficult to do so.
As you learn more about the pros and cons of Chapter 7 bankruptcy, you can begin to formulate an opinion on whether or not you should proceed.
When you combine this information with a clear understanding of your finances, it's easier to decide what to do next. If you come to realize that the pros outweigh the cons, don't hesitate to push forward with a Chapter 7 bankruptcy filing.
"Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. -- Thomas C. McBride, attorney in Alexandria, LA."
Source: FindLaw, "Pros and Cons of Declaring Bankruptcy under Chapter 7," accessed June 15, 2018