Making the decision to file for bankruptcy under Chapter 7 of the bankruptcy code is difficult. You may be worried about how it will affect your credit or your reputation, but in most cases, it will dramatically improve your quality of life. Below is a list of pros and cons that may help you make your decision.
Bankruptcy filings do affect the filers’ credit. A Chapter 7 bankruptcy will be reported on your credit report for 10 years.
Even though a bankruptcy will be reported for 10 years, most debtors start recovering from the experience as soon as they get a bankruptcy discharge. You may be able to get credit within just a couple of months. Using our credit repair system, many people achieve a 720 credit score in less than 2 years after bankruptcy.
Certain non-exempt property and luxury items may be lost during bankruptcy proceedings.
While there is always the potential to lose certain assets in a bankruptcy case, the majority of those who petition for bankruptcy keep everything thanks to state exemptions
You will lose all your credit cards.
This is true, but you also lose the credit card debt which isn’t a bad trade-off. The pro is that, within a few months, credit card companies should be open to giving you a credit card again.
You won’t be able to get a mortgage after filing for bankruptcy.
A bankruptcy can make it more difficult to get a mortgage for a couple of years, but most people can find a lender who specializes in difficult to finance people
If I file bankruptcy now, I won’t be able to file again for at least 6 years. What if I get even worse financial problems?
Because a Chapter 7 bankruptcy gives you a fresh start, most people will not need to file another bankruptcy petition. However, if things go drastically wrong after your Chapter 7 has been discharged, you can still file a petition for bankruptcy under Chapter 13.
Bankruptcy won’t get rid of my child support, tax debt or student loan debt.
In most cases, this is true, but it will wipe out most of your other unsecured debt making financial management easier. Bankruptcy will also stop most aggressive debt collection actions through the automatic stay.
A Tacoma Bankruptcy Attorney Can Guide You Through the Chapter 7 Bankruptcy Process
Financial distress can make you feel desperate, but a Chapter 7 bankruptcy involves many complicated considerations, so you should seek legal advice from a Tacoma Chapter 7 bankruptcy lawyer so you can make an informed decision regarding your bankruptcy options. At Northwest Debt Relief Law Firm, our bankruptcy attorneys can help put your concerns to rest and formulate a chapter 7 bankruptcy liquidation plan for your specific situation. Call us today for a free legal initial consultation.