{"id":286970,"date":"2016-04-04T10:41:54","date_gmt":"2016-04-04T15:41:54","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/pros-and-cons-of-declaring-bankruptcy.html"},"modified":"2024-06-07T11:25:35","modified_gmt":"2024-06-07T16:25:35","slug":"pros-and-cons-of-declaring-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/pros-and-cons-of-declaring-bankruptcy.html","title":{"rendered":"Bankruptcy: Advantages and Disadvantages"},"content":{"rendered":"\n
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Bankruptcy: Advantages and Disadvantages<\/h1>\n
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\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
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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
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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

Declaring bankruptcy can feel like a big step in the wrong direction. People who file for Chapter 7 bankruptcy or Chapter 13 bankruptcy find relief from debts but face new challenges. They must rebuild their credit and hope that banks will eventually lend them money. They may also have to learn to enjoy a scaled-down lifestyle after bankruptcy.<\/p>\r\n

While it can be scary, bankruptcy also provides considerable relief for people drowning in debt. It can stop dreaded phone calls and letters from creditors and collection agencies. Thanks to the automatic stay, creditors can’t contact you during bankruptcy proceedings.<\/p>\r\n

More than anything, bankruptcy gives people a fresh start. Here, we will discuss the pros and cons of filing for bankruptcy. If you want more information on this topic, visit Findlaw’s\u00a0Bankruptcy<\/a>\u00a0pages or contact an experienced\u00a0bankruptcy attorney<\/a>\u00a0near you.<\/p>\r\n

Disadvantages of the Bankruptcy Process<\/h2>\r\n

Some of the disadvantages of filing a Chapter 7 bankruptcy case or a Chapter 13 bankruptcy include:<\/p>\r\n