Pros and Cons of Chapter 7 Bankruptcy
Have you recently found yourself in a financial situation that may result in a Chapter 7 Bankruptcy? Before moving forward it is always a good idea to understand the pros and cons of filing for bankruptcy. Talking to the bankruptcy attorneys at Robinson, Seiler & Anderson can help you in making the right decision for you and your family. Below we have mapped out a few pros and cons when it comes to filing for Chapter 7 Bankruptcy.
· A bankruptcy stays on your record for years, but the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about 3-6 months.
· Most state exemptions allow you enough so that most things you own will be exempt from bankruptcy, sometimes allowing more coverage to keep your property than you need.
· You may also be able to obtain new lines of credit within one to three years of filing bankruptcy, although at a much higher interest rate.
· Although, you can only file under Chapter 7 once every six years, you can always get a Chapter 13 plan if there is another disaster before you are entitled to file for Chapter 7 again. You may file for a Chapter 13 plan repeatedly, although each filing appears on your credit record.
· Bankruptcy will prevent your lenders from aggressive collection action.
· Chapter 7 does not require that you have debts of any particular amount in order to file for relief. However, even if your case gets converted to Chapter 13, it can still improve your financial situation by obtaining more favorable terms to pay off your debts. With Chapter 13, you get to keep all of your property as well.
· Bankruptcy will ruin your credit for some time to come. A Chapter 7 bankruptcy can remain on your credit report for up to 10 years.
· You will lose property that you own that is not exempt from sale by the bankruptcy trustee.
· You will lose all your credit cards.
· Bankruptcy will make it nearly impossible to get a mortgage, if you don't already have one.
· Bankruptcy will not relieve you of your obligations to pay alimony and/or child support.
· Bankruptcy will not get rid of your student loan debt.
For more advice regarding bankruptcy and what would be the most beneficial for you in your situation, you should consider scheduling a consultation with the bankruptcy attorneys at Robinson, Seiler & Anderson. They can guide you through the process and help you, no matter how unique your situation is.