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Evey Black Attorneys

What are the pros and cons of a Chapter 7 bankruptcy?

On Behalf of | Jun 15, 2020 | Uncategorized |

When facing insurmountable debt, most Hollidaysburg, Pennsylvania, residents do not know where to turn for real help. Unfortunately, many ignore their debt and the inevitable calls and letters demanding payment. While debt does not just disappear, you can find a solution that works for you.

Chapter 7 bankruptcy is one way that Pennsylvania residents choose to address overwhelming debt. However, before deciding to file bankruptcy of any kind, it is wise to learn what this remedy can do for you. At the same time, you will want to avoid any significant disadvantages of Chapter 7. Below, you will find a brief list of several (but not all) pros and cons associated with chapter 7 bankruptcy.

Advantages of Chapter 7

  • It is a relatively fast process, lasting only about three to six months
  • You will likely be allowed to keep some of your possessions
  • It puts a stop to aggressive debt collection attempts
  • You may begin rebuilding your credit within just a few years of filing

Disadvantages of Chapter 7

  • It will be extremely difficult to acquire a mortgage after bankruptcy
  • You will have to give up all your credit cards
  • Your credit score will suffer for up to 10 years after filing
  • Bankruptcy does not cover child support or student loan obligations

A law firm familiar with bankruptcy can offer you guidance on whether Chapter 7 is right for your situation. You can also use the time you spend with a lawyer to ask about other types of debt relief such as a Chapter 13 bankruptcy. This gives you the best chance of discovering which debt relief option will best meet your immediate and future needs.

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