Filing for bankruptcy has many advantages such as ending foreclosure, stopping creditor phone calls and eliminating wage garnishments, but there are some disadvantages. It is important to contact a Fresno Bankruptcy Attorney to consider all the possible downsides of bankruptcy. Prior to filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy it is important to consider all the disadvantages.
- You credit score will probably be lowered. This may not matter, because often an individual’s credit score is already very low due to unpaid bills and late mortgage payments.
- Bankruptcy will be part of your public financial record.
- Bankruptcy may make it difficult for you to lease a home or car.
- Bankruptcy filings will be part of your credit report for ten years.
- Getting any type of loan to make a large purchase may be more difficult or you may face higher interest charges to borrow money.
- Certain debts will not be discharged by filing bankruptcy including: alimony, certain student loans and child support payments.
- Discharge of debts through Chapter 7 Bankruptcy can not be done again for at least eight years.