You may not want to file for bankruptcy for the follow reasons.
- You could lose nonexempt property.(non-exempt property refers to any assets you would need to hand over to a trustee to sell and pay for your debts.) eg. of such property would be a second home, a second car, stocks, bonds, investments and many others.
- A bankruptcy would be part of your credit history for 10 years (according to the Fair Credit Reporting Act).
- A history of bankruptcy reputation could lead to discrimination(this should not be a major concern as there are available protections for that)
- The cost of filing for bankruptcy. (The filing fee for a chapter 7 case cost about $299.00 and for Chapter 13 about $274.00. This is apart from attorney fees. You would also be required to pay for the consumer credit counselling briefing and also personal financial management education courses, these usually cost anywhere from $70 - $100. Nevertheless these costs in some cases, especially chapter 7 cases could be waived.)
