What are some of the pros and cons of filing for bankruptcy? I'm thinking of doing it, but I'm not sure yet!!!

Answer 1

I can say that the pro's are that you can have a lesser payment monthly for most of your credit problems, but since the new law change in 2005, a lot has changed. Payments such as house, rent, utility bills, can't be placed on it, and it stays on your credit for atleast 10 yrs. Everything you are in debt for has to be placed on record, so, depending on how much that is and how much your income is, you still may not be able to file bankruptcy. Also, it's not cheap to file regardless to what legal services may tell you. Once filed, everything of substantial cost has to be approved thru your Trustee's office. You'll pay almost twice as much for anything of credit, if it's excepted, for a very long time. The main thing is that if you decide to file bankruptcy to hold on to items like cars, trucks, house, and get behind for any reason, it will still be taken after making this effort. So, unless there is absolutely no other way, by contacting the creditors and working out a lesser payment till caught up, (your best option), don't do it. It would be better to show good faith in taking care of your obligations, (stop charging on cards, go out less to eat, get rid of the cable, and other things that are not a must), and pay the agreed payments on time, than to get farther behind and do nothing. Creditors respond to that type of attempt. Good luck!

Answer 2

A major con is that it will follow you forever. It will be extremely difficult to get a loan, another credit card or even a mortgage. Another con is that you are not safe from credit card companies. Bush signed a law allowing cc's to still be able to expect a payment. It would alleviate other bills though and not have to pay them. The best thing is to pay them off and get your credit score good again. Just because you bought a whole bunch of stuff doesn't mean it should allow you to skip payment on them

Answer 3

pros- all of your creditors must stop trying to collect debts, with the exception of tax debts, student loans or debts owed to the government, a judge will issue a cease and desist order immediately. ultimately the debts are written off and discharged.

cons- 1. you need to hire an attorney and pay filing costs, this is usually upwards of 1000 and can be much higher depending on your situation 2. your name will be published in the paper but no one really reads this section anyway 3. your credit score will drop dramatically even if its bad now and it will be very hard for you to obtain credit in the future 4. a full 2/3 of next years tax return will be taken by the government and distributed to your creditors 5. your consceince may make you feel guilty for not paying your way through life

Answer 4

Pro - they have to stop hounding you every minute of every day for money. Con - you have that on your credit record for 7 years.
Chapter 7 or Chapter 13 - read up on both at the library. I am trying to decide too - my mom's medical bills are sucking me down the drain & I have no reserves left. Good luck.

Answer 5

don't do it..... JUST DON'T DO IT!!!!!!!!! Bankruptcy will make a mess of your life for much longer than it is worth, and you will still end up responsible for payment on some of your bills. The pros of bankruptcy are almost non-existent

Answer 6

you may want to contact one of those conumer credit counseling services first. they're non-profit & work with your creditors. bankruptcy is going to be on your credit report for a long time - no car shopping, house shopping, etc. for a long while...