Discuss your personal financial circumstances with a qualified bankruptcy attorney as the Federal Bankruptcy Laws are as complex as they are powerful. Your rights to retain the property and discharging of your debts depends on your fact-specific circumstances.
Pros of Bankruptcy
Cancels most if not all of your debt
Provides you with a “fresh start”.
As a result of having your debts canceled, it gives you a positive attitude to deal with life’s other stresses and responsibilities.
Allows you to keep your car if you remain current on the payments.
If you own a home, allows you to keep your home if you remain current on the payments.
If your home is in foreclosure, allows you to avoid foreclosure and make monthly payments on the past due amounts or the time to refinance or sell your home.
Does not prevent you from obtaining credit.
Does not prohibit you from paying selected creditors after your bankruptcy is filed.
Prevents creditors from making a claim after the bankruptcy is filed even if you later win the lottery.
Cons of Bankruptcy
The “fresh start” envisioned by the bankruptcy law is only obtainable every 8 years.
For 10 years, your credit report will show that a bankruptcy was filed.
You may have to wait 2 years before you can buy a home, although some lenders allow for home loans after one year.