In order to make an informed decision about whether or not to file bankruptcy, it is imperative to first weigh the pros and cons of your options. Below is a list of the various cons associated with a bankruptcy filing:
All Debts Qualify for a Discharge: While most unsecured debts can be
written off in your bankruptcy other debts cannot. These include:
from personal injury claims
from criminal court orders.
Debts/Co-signers: Debts that were obtained jointly with
another individual will be discharged for you, but creditors can still pursue
the non-bankrupt debtor.
on Credit Score: The filing of a bankruptcy can appear on
your credit report for up to ten years. However, keep in mind that since old
debts have been wiped clean, you are likely to be in a better position to pay
your current bills making it easier to obtain new credit (as compared to your
pre-bankruptcy debt to income ratio).
If you receive an inheritance, a property settlement, or life insurance
benefits within 180 days after filing for bankruptcy, that money or property
may have to be paid to creditors if the property or money is not exempt.
Choices: Since bankruptcy filings are a matter of public
record, some employers can use this information when choosing job candidates
(mostly in the banking and finance sector).
For additional information regarding bankruptcy, visit szymoniaklaw.com or consult a qualified bankruptcy attorney.