Chapter 7 Disadvantages Bankruptcy Lawyers for Over 40 Years
Why NOT Chapter 7?
Disadvantages of Chapter 7 bankruptcy include:
Chapter 7 will not help you get caught up on past due mortgage or car payments.
Your non-exempt property and assets may be lost to the bankruptcy court and sold to pay off creditors.
Not all debt is discharged or cancelled including spousal support, child support, and certain student loans and taxes.
Chapter 7 bankruptcy can only be filed once every eight years so you may not be eligible if you've filed before. Or if you need to file again within eight years, you cannot file Chapter 7 again within that period.
If your home is being foreclosed, the foreclosure is only temporarily stalled by filing and will continue after your Chapter 7 discharge, if not sooner.
Co-signors of a loan can be stuck with your debt unless they also file for Chapter 7.
A Chapter 7 bankruptcy will negatively affect your credit rating and make it more difficult to get loans in the immediate future.
Your bankruptcy will be appear on your credit report for seven to ten years.
Most credit card companies will automatically cancel your credit cards when you file for bankruptcy.
A recent bankruptcy filing will likely hinder your ability to obtain a mortgage or loan for many years.
Tax refunds from federal, state or local governments may be lost based upon your bankruptcy unless you carefully coordinate when you file your tax returns with when you file bankruptcy.
If you are looking for a job or housing, some employers or landlords may look unfavorably on a recent bankruptcy filing.
After your bankruptcy, some debts, such as student loans, many types of tax debts, liens, support orders, or fines may be non-dischargeable and you will still be obligated to pay them.