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Repercussions
Keep in mind bankruptcy doesn't come
without some trade offs. For example, filing puts the world on notice about
your personal financial affairs. Since it's a civil court proceeding it
becomes a matter of public record. In some cases, (chapter 13) even your
employer can be involved because this chapter often requires deductions
from you paycheck.
Bankruptcy also stays on your credit
report for up to 10 years and can hinder your ability to get a job, establish
new credit, get insurance and even a place to live. Furthermore, you will have to pay court, filing and attorney
fees up front. You will also lose control over your finances since a
Trustee will be appointed to oversee the completion of your filing. This in
addition to the fact that filing doesn't necessarily get you out of
all your obligations, bankruptcy is not that end all solution that
it's portrayed to be.
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