Bankruptcy?

Question

Can anyone tell me the pros/cons about filing bankruptcy?

Answer 1

If you can avoid it - do so at all costs! Consolidate and pay off debt when you can. You are trapped for 5 years if you file Chapter 7 - where you pay back at a small percentage. They take the money from your check and distribute the funds to all your collectors. One payment missed - and they can discharge you. You might look up one day and your car is gone - repo'd because the bank didn't get their money. The courts have a huge responsibility to make sure the money is distributed. Anyone that is not listed as a debt - can still try to collect. Even after you are out of the BK - you need to be responsible for your finances - you might find you still have accumulated debt and you are having to pay. Filing does not always relieve you of the debt - sometimes you can be worse off. Especially if you owe the IRS/ Filing Chapter 13 relieves you of all debt - but the courts have to agree and make the decision that you are totally in over your head. IF they think you can pay - they won't let you file 13. The laws have changed now and it's harder to file. Check with BK attorney - but keep your eyes on them too. They can really mess you up

Answer 2

Pro: You get out of debt.
Con: It will go against your credit for 10 years and you won't be able to get a credit card, car or anything else without paying high interest.

The bankruptcy laws have changed dramatically in the last few years. If you are wanting to file just so you don't have to pay, the courts might not let you. If you lost your job and can't pay then they will let you do it. I would go to a credit counseling service first and see what they can do before you file. Call a bankruptcy lawyer and find out what route you should take first.

Answer 3

There really are no pro's now. George Bush and Congress passed a law this past October to make it difficult to file for bankruptcy. Not only is it more expensive to file, but it is more difficult to get discharged. Meaning, you may file, but the courts may tell you to screw yourself and pay for your debts. Under the new law, you will also be required to go to credit counseling training. Bankruptcy also screws your credit bad. You will be hard pressed to buy anything in the future without having to pay higher interests or denial. A postive? If you can sufficiently prove that you are unable to pay for debt. Good Luck.,

Answer 4

Depends on how much you owe. The new laws make it more difficult to file. Just make sure if you file it is really worth it. Pro: If you file Chapter 7 it wipes your debt clean. Con: your credit will be messed up for years and it will take a lot of time to repair it. If you have a house or other assets they may make you sell them to pay the debt. Bankruptcy attorneys are expensive. It stays on your report for 10 years, if you do get crdit you will probably have a higher interest rate.

Answer 5

You have to consider the long-term consequences that can ensue from filing for bankruptcy. It can be for some a legal way to "wipe their financial slate clean" and start anew. You have to consider how it will effect your credit rating and finances for years to come, filing for bankruptcy should only be considered as a last resort after consulting with both a lawyer and a debt counselor to ensure that it is the best option for you.