The potential disadvantages of bankruptcy include:

• Loss of credit cards.
• Immediate impact on your credit score.
• Difficultly obtaining a mortgage or loan.
• Loss of property and real estate.
• Denial of tax refunds.
• Job and housing stigma.
• Non-Dischargeable debts.

  Can you recover from declaring bankruptcy?

  Bankruptcy can be painful, embarrassing and devastating to your credit standing, but its promise of a “fresh start” is very real. And if you have a solid game plan, you can do much to recover from bankruptcy and restore your credit within a few years of filing.

  What are the consequences of a Chapter 7 bankruptcy?

  The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date. Should you get into debt again, you won’t be able to file again for bankruptcy under this chapter for eight years.

  Can a job be affected by a bankruptcy?

  Many employers check credit reports for new hires and when promoting from within, and certain jobs are more likely to be affected by a bankruptcy than others. When a person cannot repay their outstanding debts, they can declare bankruptcy, starting by filing a petition with a debtor or on behalf of creditors.

  What happens to your money when you file bankruptcy?

  Money from the sale goes toward paying your creditors. The balance of what you owe is eliminated after the bankruptcy is discharged. Chapter 7 bankruptcy can’t get you out of certain kinds of debts. You’ll still have to pay court-ordered alimony and child support, taxes, and student loans.

  How does Chapter 13 bankruptcy affect your credit?

  While any type of bankruptcy negatively affects your credit, a Chapter 13 may be a more favorable option. Because you repay some (or all) of your debt, you may be able to retain some assets.