Pros and Cons


  • Cancels much of your debt.
  • Provides you with a “fresh start”.
  • As the result of having your debts canceled, it gives you a positive attitude to deal with life’s other stresses and responsibilities.
  • Allows you to keep your car if you remain current on the payments.
  • If you own a home, allows you to keeps your home if you remain current on the payments.
  • If your home is in foreclosure, allows you to avoid foreclosure and make monthly payments on the past due amounts.
  • Does not prevent you from obtaining credit.
  • Does not prohibit you from paying selected creditors after your bankruptcy is filed.
  • Prevents creditors from making a claim after the bankruptcy is filed even if you later win the lottery.


  • The “fresh start” envisioned by the bankruptcy law is only obtainable every 8 years;
  • For 10 years, your credit report will show that a bankruptcy was filed;
  • You may have to wait 2 years before you can buy a home, although some lenders allow for home loans
    after one year.

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