There are limited pros with bankruptcy. Bankruptcy can follow you on your credit reports for up to 10 years and can keep you from obtaining a new mortgage for two to three years. A bankruptcy filing may prevent you from getting a checking or savings account or prevent access to your current accounts for a period of time. Most people try for a chapter 7, which allows you to eliminate all or most of your debt; but ONLY if you qualify. Depending on the amount of income you earn, qualifying for a chapter 7 may be difficult. Frequently, the judge moves to a chapter 13, which basically means the court is going to acquire your income, give you back an allowance, and use the rest of your money to pay off your creditors. It's not uncommon for a chapter 13 to stay in effect for five years, with the court supervising your spending the entire time. It is an option, it is appropriate at times, but before making the choice for B.K., make sure you explore all your options.
If you are committed to bankruptcy as a method of debt relief, by all means, consult with a bankruptcy attorney for sound legal advice before you take action. Contact us for referrals to qualified Bankruptcy attorneys.