Claiming Bankruptcy

The advantages and disadvantages

Advantages

  • A automatic stay will be activated, and that prevents creditors from taking action to collect there debt. Which includes but not limited to, sending you letters, calling you, and sending letters.


  • By using some bankruptcy exemptions, you can go through bankruptcy without losing any of your belongings.


  • Can make debt older than 3 years go away.

Disadvantages

  • Some of your property may be seized by court and sold to pay your creditors.


  • Bankruptcy will be noted on your credit report for 7-10 years.


  • Most of the credit card companies will automatically cancel your credit card when you file for bankruptcy.

Obligations that cannot be discharged by claiming bankruptcy

  • Student Loans


  • Many type of Tax Debts


  • Liens


  • Support orders (a.k.a child support)