People who are in debt may struggle with finding a solution to their money problems. While some people are able to get out of debt on their own, others may have to file Chapter 7 or Chapter 13 bankruptcy. Of course, filing Chapter 7 will give them the debt relief they need, but many people may not be 100 percent sure about filing because of some of the cons associated with it.
When you choose Chapter 7, you may have a lot of debt that is made up of things like medical bills and student loans, but it is very likely that you will also be looking for relief from credit card debt. Getting rid of this credit card debt would be a good thing since you are trying to get better control of your finances and avoid having to pay back what you owe, but many people view losing their credit cards as a con.
Filing for Chapter 7 may result in losing your credit cards, but the reason it should not be considered a con is because the cards are partly to blame for your debt, and also because, in a few years, you may be able to apply for other credit cards. If you are really committed to getting out of debt, there is no reason to keep the cards that got you in debt. You will also want to be extremely careful should you decide to apply for a credit card once your debt has been cleared and your credit is where you want it to be.
Not everyone who is in debt will file for Chapter 7 bankruptcy. The goal of filing is to get debt relief, but many people may still hesitate to make a decision because of how it may affect their life. Should you have any questions or concerns about bankruptcy or want to file, an attorney may be able to assist.