Major Causes of Bankruptcy Job Loss Emotional Spending Failure to Budget and Plan Catastrophic Injury or Illness
Advantages of Bankruptcy Offers a fresh start Start over with exempted items. Unaffected income include: social security, veterans' benefits, unemployment compensaton, alimony, child support, disability payments, and payments from pension, profit-sharing, and annuity plans. Cost benefits outweigh negatives
Disadvantages of Bankruptcy Judgements stay with you for 10 years. Exempt items might be fair target for liquidation. Examples of debts not discharged include: child support, income taxes and penalties that are less than 3 years old, student loans. Reaffirmed debts would not provide a fresh start. Damage to personal relationships as co- signers are saddled with your debts.