What are the Pros and Cons of Filing Chapter 7 Bankruptcy?

Deciding to file bankruptcy is never an easy thing.  Bankruptcy can affect so many aspects of your life from having you lose the ability to get credit, leave a mark on your credit report for up to ten years, and it can affect your quality of life for the short term.  Before making the decision to file bankruptcy, you should weigh the pros and cons.

The Pros of Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy typically takes just a few months to file.  It can help you come up from under big debts.  If you have defaulted on loans or have missed payments, and cannot get current on your debts, chapter 7 may be the right choice for you.  Under Chapter 7 you may be able to keep your family home, which is beneficial for those who wish to keep their property.  While Chapter 7 may follow you on your credit report for many years, you may be able to still get a line of credit with some banks or other credit issuers.

The Cons of Filing Chapter 7 Bankruptcy

Filing bankruptcy can ruin your credit for many years.  It can also cause you to lose property that is not exempt from sale by the bankruptcy trustee.  You may also lose some of your luxury possession.  It can also be quite difficult to get a mortgage or get a new mortgage after you have filed for bankruptcy.  While Chapter 7 bankruptcy can get rid of many debts it will not discharge student loans.

It is important that you consult with an experienced bankruptcy attorney who can help you determine if bankruptcy is right for you and help you through the process. Contact our firm today for strong legal representation.

The Law Offices of George Poulos is an experienced Workers’ Compensation, personal injury, bankruptcy, and Social Security Disability law firm with offices in Queens and the Bronx. If you require strong legal representation, contact our firm today to schedule a free consultation.