What are the pros and cons of claiming Bankruptcy?
Pros – depends on what type of bankruptcy you are filing. If, for example, your house is in foreclosure and you are about to lose the house, a Chapter 13 is very effective for saving the house, provided you can pay your house payment, plus more money on top of that to a trustee to get caught up in the mortgage (the max time you have to do this is 5 years). You get a discharge at the end, but it is very difficult to succeed at a chapter 13. Also, creditors are forced to cooperate, it is against federal law for them to not follow the bankruptcy code and rules when you file. If you do not have a house, or are current on the house and there is no equity in the house, a chapter 7 is very effective at wiping out all debts, except for child support (and maintenance), student loans, and tax debt. it is very helpful if you have lots of medial bills or credit cards (or both) and not much in the way of assets. Cons – it can in fact be on your credit report for 10 years (yes 10, not the 7 that eve
