Bankruptcy Pros and Cons
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As with most life decisions there are pros and cons to filing bankruptcy. Bankruptcy is a very personal decision and it’s implications vary greatly depending on your specific scenario including income, assets, and debts. These are the general pros and cons associate with bankruptcy.
Pros of Bankruptcy
* If you are filing chapter 7 bankruptcy, most or all of your debts could be wiped out in the bankruptcy discharge, letting you start over fresh.
* With bankruptcy exemptions you will be able to keep most or all of your personal property.
* Collection calls and letters will stop immediately once the automatic stay goes into effect.
* Filing a chapter 13 bankruptcy could save your home from foreclosure.
Cons of Bankruptcy
* You risk losing property in a chapter 7 if the property is not exempt.
* Your credit score will be lowered and affect your ability to get credit cards, loans, mortgages and other credit lines such as cell phone service.
* If you plan to apply for a new job, your bankruptcy could affect whether or not you are hired.
While these are the biggest pros and cons of filing bankruptcy, your bankruptcy could have tax affects and other issues, so it’s important to speak with a bankruptcy attorney and determine if bankruptcy is the right choice for you.
