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Chapter 7 Bankruptcy: Find Out The Pros And Cons

Pros and Cons of Filing Chapter 7 Bankruptcy:

The Pros:

• Filing under the Chapter 7 bankruptcy is that any amount of debt may be eliminated or discharged and allows you to get a clean slate.

• The other advantage is that there is no particular amount of debt to qualify you for filing under the Chapter 7 bankruptcy. Protection laws granted under Chapter 7, the creditors cannot exert any authority over you.

• Chapter 7 is processed quickly and you can be discharged from any debts in a short period of time, approximately about four to six months.

The Cons:

• Chapter 7 bankruptcy is that you have to give up all your non-exempt property or assets. 

• Debts like taxes, child support, housing mortgages, students' loans and car loans are usually not discharged under the Chapter 7 bankruptcy law.

• Along with you the co-signers will also be pulled in and asked to pay for your home loan.

• The filing time limit for Chapter 7 is eight (8) years from the discharge date of a previous Chapter 7 filing. 

• It becomes difficult to obtain favorable loans because your credit rating gets damaged and remains on your credit report for approximately 10 years from the date of filing. Once you have filed for the Chapter 7 bankruptcy, it cannot be withdrawn.

Weigh your options cautiously if you are considering filing under the provisions of Chapter 7 bankruptcy.

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Bankruptcy

Legal Research Law ArticleView all Bankruptcy and Debt Relief Articles     Legal Research Law FAQView Bankruptcy FAQ

Legal Research Law FAQView Chapter 13 Bankruptcy FAQ   Legal Research Law FAQView Chapter 7 Bankruptcy FAQ