Bankruptcy Pros and Cons
Before you make the decision to file for bankruptcy, consider the pros and cons on your own or with a credit counsellor. Here are some important arguments to consider:
- The discharged bankrupt is relieved of most debts, and unsecured creditors cannot take legal steps to recover their debt. It allows you to make a “fresh start.”
- Bankruptcy generally does not affect employment.
- The bankrupt can avoid being harassed by creditors.
- Some debts are not released with a bankruptcy declaration. These include: spousal support, child support, debt arising out of fraud, court fines, and debts or obligations for student loans when the bankruptcy occurs while the debtor is still a student or within 10 years after the bankrupt has ceased to be a student.
- The bankrupt may have difficulty in being bonded
- It will negatively affect your credit rating, and will appear on your rating for six or seven years