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Have You Thought About These Drawbacks Of Chapter 7 Bankruptcy?

On Behalf of | May 24, 2018 | Chapter 7 bankruptcy

Despite the many benefits of Chapter 7 bankruptcy, you don’t want to push forward until you’re familiar with both the pros and cons.

If you’ve yet to consider the drawbacks of Chapter 7 bankruptcy, it’s best to learn more before you take action. Neglecting to do so could lead to disappointment in the future, and that’s not something you need with so much already on your plate.

Here are some of the top potential drawbacks of Chapter 7 bankruptcy:

  • It will remain on your credit report for up to 10 years: With this in mind, you know that your credit report and score will be dinged up for an extended period of time.
  • You can lose property that is not exempt: Don’t assume that you’ll get to keep all your assets in Chapter 7 bankruptcy, as this is not always the case.
  • Chapter 7 bankruptcy can make it a challenge to secure a loan, such as a mortgage in the near future: If you have reason to believe you’ll need to borrow money, bankruptcy may not be a good idea at this time.
  • Chapter 7 bankruptcy will not eliminate student loan debt, child support payments, or alimony payments.

These drawbacks of Chapter 7 bankruptcy are something to seriously consider. Although the pros typically outweigh the cons, you need to know exactly what you’re getting into.

Once you have a list of the pros and cons in front of you, it’s easier to review your financial situation with the idea of making a final decision for or against a Chapter 7 bankruptcy filing.