While bankruptcy can bring a fresh start to individuals and businesses facing overwhelming debt, it is not necessarily the appropriate choice for all debtors. In fact, the costs of bankruptcy could outweigh the benefits for those individuals and businesses on the brink.
There are several negative aspects associated with bankruptcy:
- A Chapter 7 bankruptcy filing remains on your credit report for 10 years and a Chapter 13 remains on your credit report for 7 years and a Chapter 7
- For Chapter 7, your non-exempt assets are sold and you must forfeit control over how the proceeds from non-exempt assets are distributed
- For repayment schedules (usually associated with Chapter 13), payments may be deducted directly from your paycheck
With a Chapter 7 or Chapter 13 on your credit report, you may find it difficult to obtain loans. Of course, you can take some steps during that time to improve your credit rating. Contacting a Dallas Texas Bankruptcy Lawyer or McKinney Bankruptcy Lawyer can help you with these issues, if they do come up.