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Should I File for Bankruptcy
http://www.uaseducation.com/articles/7379/1/Should-I-File-for-Bankruptcy/Page1.html
Amit Kothiyal
I am an educational consultant and like to share my some experience in the article.  
By Amit Kothiyal
Published on February 9, 2012
 
Filing for bankruptcy is one of the toughest decisions that you will ever make in your life. It is not the right option for everyone, and it should only be done after every possible debt reduction measure that you have taken has failed.

Should I File for Bankruptcy

Filing for bankruptcy is one of the toughest decisions that you will ever make in your life. It is not the right option for everyone, and it should only be done after every possible debt reduction measure that you have taken has failed. If you want to know whether filing bankruptcy is the best option for you, it is essential that you understand the pros and cons of bankruptcy.

Pros
1) Relief from Creditors
When you are in debt, your creditors will be calling you or sending you mail constantly to remind you to make payments. Such actions can cause a lot of stress. If you file for bankruptcy, your creditors will be ordered by the court to cease all its collection actions, and your attorney will be responsible for handling all transactions with your creditors. This means that you do not have to deal with your harassing creditors anymore.

2) Foreclosures and Repossessions Will Be Frozen
If you have mortgaged your home or used your vehicle as collateral for a loan, you will face the risk of having these assets foreclosed or repossessed when you are in debt. Filing for bankruptcy will freeze all actions to foreclose your home or repossess your vehicle, giving you the assurance that you will not lose these essential assets.

3) Fresh Start
It is almost impossible to have a constructive financial life when you are struggling to pay your debts. Bankruptcy gives you a fresh start, allowing you to get back on your feet and start rebuilding your financial life.

4) Protection from Lawsuits
One of the things that debtors worry about is that they will be sued by their creditors. Once you have filed a petition for bankruptcy, your creditors cannot sue you for outstanding bad debt.

5) More Time to Pay Non-Dischargeable Debts
Bankruptcy can help you get rid of most of your debts, but certain debts are non-dischargeable. These debts include debts that are not listed in your bankruptcy filings, student loans, taxes, fines, child support, and others. The advantage of filing for bankruptcy is that it gives you more time to pay off your non-dischargeable debts.

6) Right to Keep Primary Residence
Most states allow bankruptcy filers to keep their primary residence. In some states, filers can exempt their primary residence, vehicle, and other belongings that are essential for making a fresh start.

Cons
1) Surrender of Possessions
Bankruptcy comes with a sacrifice. You will be ordered by the court to surrender certain non-essential possessions when you file for bankruptcy.

2) Bad Credit History
After you declare bankruptcy, the status will remain in your credit report for 10 years. This will make it more difficult for you to qualify for a loan or mortgage, as well as insurance and insurance discounts. It can also affect your chances of getting a job.

3) Loss of Credit Cards
Bankruptcy can also cause you to lose your credit cards. You will not be allowed to use the credit cards that you failed to pay off before filing for bankruptcy.

4) Some Debts are Non-Dischargeable
While bankruptcy can help you reduce your overall debt, it may not make you completely debt-free. You are still required to pay your non-dischargeable debts.

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