Pros
- 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.
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cons
- 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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