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

Bankruptcy has positives and negatives: Learn more about it

Bankruptcy can be a good thing, but it also has some negative consequences. If you plan to file for bankruptcy, it's smart to look into all of your options before you do. However, if you think that bankruptcy may be right for you, seeing the positives and negatives in a simple list could help you solidify your choice.

Bankruptcy has many positives to consider. Some of them include:

  • Being able to complete bankruptcy in only around three to six months with Chapter 7 bankruptcy or up to five years with Chapter 13 bankruptcy
  • Being able to eliminate unsecured debts as you emerge from bankruptcy
  • Potentially being able to access new lines of credit within one to three years of filing (the interest rate may be high)
  • Protecting you against aggressive collection action
  • Stopping harassing phone calls

Of course, with all the possible positives, there are also some negatives to think about. These include:

  • Not being able to eliminate student loan debt in most circumstances
  • Making it harder to get a mortgage if you want one in the future
  • Having to explain yourself and how you found yourself in dire financial straights
  • You may need to pay some of your debts, like mortgage liens, child support or alimony, regardless of the outcome of the bankruptcy

At the end of the day, it's up to you to decide if bankruptcy is the right decision for you. Your attorney can talk to you more about bankruptcy and what to expect. Our website has more on personal bankruptcies and how to begin your application.

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

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.


Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

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