{"id":286906,"date":"2016-04-04T10:41:50","date_gmt":"2016-04-04T15:41:50","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/chapter-7\/pros-and-cons-of-declaring-bankruptcy-under-chapter-7.html"},"modified":"2024-06-07T12:44:33","modified_gmt":"2024-06-07T17:44:33","slug":"pros-and-cons-of-declaring-bankruptcy-under-chapter-7","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/pros-and-cons-of-declaring-bankruptcy-under-chapter-7.html","title":{"rendered":"Advantages and Disadvantages of Chapter 7 Bankruptcy"},"content":{"rendered":"\n
\n \n
\n

Advantages and Disadvantages of Chapter 7 Bankruptcy <\/h1>\n
\n
\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Deciding whether to declare bankruptcy<\/a> is complicated. It affects your future credit, your reputation, and your self-image. At the same time, if you wait too long to decide, your financial situation may worsen. Your monthly income may not be sufficient to make your monthly payments.<\/p>\r\n

While filing Chapter 7<\/a> or Chapter 13 bankruptcy<\/a> can be scary, it can also improve your quality of life. Creditors and collection agencies will stop calling and writing to you. Your credit score may stop going down each month.<\/p>\r\n

Chapter 7 bankruptcy<\/a>, in particular, may damage your credit for a while, but it also provides much-needed relief and a roadmap for getting your finances in order.<\/p>\r\n

Here, we’ll discuss the pros and cons of filing a Chapter 7 bankruptcy case. We’ll also explain what you should consider before making your final decision. If you still have questions about whether to file Chapter 7 bankruptcy, you should contact a bankruptcy law attorney.<\/p>\r\n

Types of Bankruptcy<\/h2>\r\n

There are three main types of bankruptcy<\/a> available. The type you file will depend on your financial affairs. It also depends on whether you’re looking for a fresh start without a payment plan or wish to pay back your debts with the help of the U.S. bankruptcy courts.<\/p>\r\n

There are three options under bankruptcy:<\/p>\r\n