Chapter 7 bankruptcy can help liquidate many of your assets, but not everyone qualifies. There are pros and cons of filing that should be considered by those who are considering declaring bankruptcy.
The following are some of the pros of filing Chapter 7 bankruptcy:
- the process takes a few months;
- credit can be rebuilt;
- it relieves you of most financial obligations; and
- you get the option of using automatic stay on payments to certain creditors.
With the good comes the bad, so consider the following cons of filing Chapter 7 bankruptcy:
- it can stay on credit report for as long as a decade;
- you may lose some of your assets;
- you may pay high interest rates for new credit;
- it doesn’t stop all financial obligations (student loan, child support); and
- some debt still may need to be repaid.
Contacting a Texas Bankruptcy Lawyer
Whether you are considering filing Chapter 7 bankruptcy or Chapter 13, you may discuss your case with a bankruptcy lawyer at Warren & Migliaccio at (888) 584-9614. We can evaluate your financial situation and determine what might be the best option. Meanwhile, our law firm also offers a FREE bankruptcy guide, which can provide valuable information.