Lewis & Monroe, PLLC
Free One-Hour In-Office ConsultationsFree One-Hour In-Office Consultations
407-917-4147

What are the pros and cons of choosing bankruptcy?

As someone who has lost your job, the world may feel like it's falling down around you. It might be hard to make ends meet, and you could be considering bankruptcy.

Before you go forward with a bankruptcy, you should consider the pros and cons of doing so. A bankruptcy, in the right circumstances, can change your life for the better, but it does have some downsides to consider before you decide it's right for you.

What are some disadvantages of Chapter 7 bankruptcy?

One disadvantage is that it will ruin your credit for some time into the future. Chapter 7 bankruptcies can remain on your credit for up to 10 years. You may also lose assets that you own. There are exemptions, but some luxury assets may have to be sold in a liquidation bankruptcy.

What are the positives of a Chapter 7 bankruptcy?

One of the major positives is that your unsecured debts will be able to be discharged completely in most cases. That means that you can start fresh. While you can't discharge taxes or student loans in most cases, credit card debt and other similar debts can be discharged. Chapter 7 bankruptcy also stops creditors from calling you and trying to collect the debt.

You only get to file for Chapter 7 bankruptcy once every six years, so if you decide to do so, you need to make sure it's the right time. Your attorney can talk to you more about bankruptcy and if this is the right option to pursue based on your financial situation.

No Comments

Leave a comment
Comment Information
ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
Email Us For a Response

Contact The Firm In Orlando, Florida

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Map & Directions