What’s the downside to bankruptcy aside from a hit to my credit record?

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What’s the downside to bankruptcy aside from a hit to my credit record?

I’m not planning to borrow any money for 7 years. Isn’t Chapter 7 a good way to dump $60k in consumer debt?

Asked on April 23, 2012 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

Actually, depending on how your credit is now, filing a Chapter 7 can in many cases improve your credit.   The proper way to evaluate whether it's in your best interest or not is to have a consultation with a bankruptcy attorney and go over all the relevant information specific to your situation.    In many cases, Chapter 7 is a great option to get rid of debt.  The only other obvious "downside" is that you cannot file another Chapter 7 for 8 years, but you can file a Chapter 13 in 4 years.

I'm happy to give you a free consult to go over your options with you.

 


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