Bankruptcy Will Follow You for Years

First if you declare bankruptcy, it will be noted on your credit report for a full ten years. This can severely impact your ability to get additional credit during that time, it could make it harder to get approved for an apartment lease and could even impact your ability to get a new job in some cases.

You May Not Be Able to Keep Your Property

Unless you file a Chapter 13 bankruptcy with a plan to catch up on your payments and your creditors accept that plan or your equity is otherwise protected, you may not be able to keep certain assets. If you have mortgage debt or an auto loan secured by the vehicle, bankruptcy may mean you will have to find somewhere else to live and/or find something new to drive.

Bankruptcy is a Public Proceeding

Most people who find themselves struggling to get free from debts don’t want to advertise that fact to the world. The harsh reality is that bankruptcy proceedings are matters of public record. That means your neighbors, employer, friends, clients and everyone else could find out the details of your financial situation.

Filing for Bankruptcy Won’t Get Rid of All of Your Debt

Sometimes, people assume that filing for bankruptcy will mean they have a truly clean slate and won’t owe anyone anything. In reality, bankruptcy, even Chapter 7 bankruptcy, will not eliminate all of your debts or other expenses. If you have student loan debt or past-due tax debt, or if you are paying child support or alimony, bankruptcy is not a cure to wipe out those obligations.

Explore Your Options

Bankruptcy is one option for getting relief from your debt, but there are usually other options available too.