Filing bankruptcy allows you to eliminate your unsecured debts. This means it can wipe out your credit card debt, car loans, bank loans, and medical bills. If you’re struggling to make ends meet, eliminating these payments will inevitably help your household budget. But filing bankruptcy doesn’t change your income or other household expenses, so it won’t change the here and now.
If you don’t make enough money to cover your monthly expenses, eliminating your debt through bankruptcy won’t really give you a fresh start. Any new debt you incur just trying to get by until your income increases won’t be eliminated if you’ve already filed your bankruptcy petition. You’ll still be in the red each month, and you may be more likely to take on even more debt. You won’t be able to discharge that new debt in bankruptcy for eight years.
❗❗ The most important point to remember is this: Once you get a Chapter 7 bankruptcy discharge you can’t get another Chapter 7 discharge for eight years! Once you file a case, it’ll significantly limit your debt relief options for years. ❗❗
Filing bankruptcy is a big deal. Most folks who end up filing do so only as a last resort and after learning as much as they can about the pros and cons of filing Chapter 7 bankruptcy.