- Stops the harassment of creditors
- Stops foreclosures, repossessions, and garnishments
- Wipes out most outstanding debt
- Consolidation of bills into an affordable monthly payment
- Makes it possible for a person to rebuild their credit rating
- A bankruptcy stays on your credit report for up to ten years.
- In a Chapter 7 bankruptcy, you may lose assets such bank accounts, stocks, vehicles that are free of a lien, and even your home if you have significant equity.
- In a Chapter 13 bankruptcy, you must obtain court approval to buy a car or buy, sell, or refinance a home. As long as the proposed transaction makes sense and does not harm creditors, the court should grant its approval.