What are the disadvantages of filing for bankruptcy?

There are, of course, disadvantages to filing for bankruptcy, starting with the most obvious: Your credit score after bankruptcy is going to take a major hit – you could lose between 100 and 200 points – that won’t bounce back quickly.

What are the advantages of filing for bankruptcy?

There are several advantages to filing for bankruptcy. By far the most important advantage is that debtors may obtain a fresh financial start. Consumers who are eligible for Chapter 7 may be forgiven (discharged from) most unsecured debts.

What happens if you file for bankruptcy?

If you file for bankruptcy, your credit probably isn’t in good standing, so the blow to your credit score may not be huge. If you still have decent credit, there may be alternatives to bankruptcy available to you. It can be expensive. Filing fees for bankruptcy range from $313 for Chapter 13 to $338 for Chapter 7.