Illinois residents who are really in tough financial spots may not know exactly what to do to help their situations. No one really wants to file for Chapter 7 bankruptcy, but sometimes when the money just is not there it is the best option. How can filing for bankruptcy be of help? What are the drawbacks to it?
There are a lot of pros and cons to requesting a Chapter 7 filing. It is important to weigh them all before making a final decision about whether it is the right direction to take for one’s situation. Some of the pros include:
- Fast debt relief
- Can keep some property by filing exemptions
- Stop creditor harassment
- Ability to seek lines of credit in one to three years
Sounds good, right? It really can be but, of course, there are some cons to pursing a Chapter 7 filing, too. Some of these may include:
- Credit reporting for up to 10 years
- Loss of some property
- Not all debts qualify for discharge — such as student loans, alimony and child support
- Lose credit cards
At the end of the day, one has to ask “What will serve me best in the long run?” For some, the answer will be pursing a Chapter 7 bankruptcy filing. For others, it will be pursing other debt relief options. Those in Illinois who are unsure if bankruptcy is right for them can consult with an experienced bankruptcy attorney. With legal assistance, finding the best solution for one’s specific financial troubles is possible.
Source: FindLaw, “Pros and Cons of Declaring Bankruptcy under Chapter 7“, Accessed on Aug. 31, 2017