If you have made a decision that filing Chapter 7 bankruptcy is appropriate for you, you should have a sit-down conversation with a knowledgeable bankruptcy attorney to walk through the advantages and disadvantages of filing for bankruptcy at all. Some of the most important disadvantages of filing for Chapter 7 bankruptcy are outlined in this blog post and can include:
· Losing property that you own that is not exempted from sale by the bankruptcy trustee.
· Losing all of your credit cards.
· The impact on your credit report since a Chapter 7 bankruptcy can stay on your credit report for up to 10 years.
· Making it harder to file for bankruptcy later if something worse happens, since you may not be eligible to file for Chapter 7 bankruptcy again for several years.
· You will not be relieved of your obligations to pay child support, student loan debt or alimony if your bankruptcy is approved.
· You will have to explain to the judge or trustee how you got yourself into this financial situation.
· You are ineligible to file for Chapter 7 bankruptcy if you filed for Chapter 13 or 7 in the last 6 years.
· You cannot file for bankruptcy because your previous case was dismissed in the last 180 days because you violated any court order or because you requested dismissal after a creditor requested automatic stay relief.
· You will still be responsible for paying certain debts such as any mortgage lien even after your bankruptcy proceedings have been completed.
Even with these disadvantages, it may be in your best interest to file for Chapter 7 bankruptcy because the benefits may outweigh the risks or potential downsides. Scheduling a consultation with a bankruptcy lawyer is the only way to know whether or not it is in your best interests to file bankruptcy today.
No one should have to make this decision alone. When you think that your financial situation has spiraled out of control, you need the help that can only be provided by talking with an attorney you trust. Your financial future may benefit from a clean slate, but you’ll only know for sure if you schedule a meeting with an attorney today to talk over your options, including bankruptcy.