The biggest advantage of bankruptcy is the fact that many of your debts will be written off and discharged.
Your debts are legally waived. The downside is that bankruptcy can remain on your credit report for 10 years. You will also have legal fees and trustee fees that can get quite expensive. And not all debts will be wiped clean in Bankruptcy. You will still owe your most recent back taxes, your student loans, any fines you owe to government agencies, and alimony payments and child support payments. Bankruptcy will also make it difficult to get a new mortgage.
It is easy to fall into debt these days. Whether it’s being tempted by credit card companies sending you pre-approved cards in the mail, urging you to sign up, or medical bills piling up because of an injury or an illness, you sometimes fall behind on bills and end up in debt. In this article we’ll look at options and impacts around Chapter 7 Bankruptcy vs Debt Resolution.