Pros And Cons Of Filing Bankruptcy

A pro of filing bankruptcy is the automatic stay.  The automatic stay is what protects you from your creditors.  It stops creditors from calling you, harassing you, and trying to collect from you.  It is a powerful tool in dealing with your creditors.  It forces your creditors to only talk to your attorney. The automatic stay stops foreclosures, lawsuits, and wage garnishments. 

Another pro of chapter 7 bankruptcy is that if you are eligible, you will discharge all of your unsecured debt without having to make any payments to your creditors while keeping your house, car, and retirement accounts.  Our team will be able to help guide you through this process and your exemptions.  

The biggest advantage of filing bankruptcy is a fresh start in about 5 months.  This means it will not take years for you to start to rebuild your credit like would be necessary under some debt negotiation plans.  

As I realize with all of my clients that come into the office or talk with me by phone or text, it can be difficult to make the decision to talk with someone about debt.  I always tell clients I will give them the answers to any questions they ask, this includes a few potential cons to bankruptcy. 

The first is that chapter 7 remains on your credit for 10 years.  However, this can be mitigated by starting to rebuild your credit immediately after your bankruptcy is over.  Most of our clients tell us they see little to no effects of the bankruptcy in about 18 months after their bankruptcy.  

Another con is that you will have to give up all current credit cards and debt accounts.  You do not have the option to keep one card or leave an account out of the bankruptcy.  All of your outstanding debt obligations will need to be added to your bankruptcy.  

However, this is not the end of the world because after your bankruptcy you will be able to immediately reestablish your credit by applying and obtaining credit card accounts, and other loans such as car or personal loans.  Your fresh start will enable you to rebuild your credit.


If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-832-2499.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Privacy Policy

This privacy policy discloses the privacy practices for www.bononiandbononi.com. This privacy policy applies solely to information collected by this web site. It will notify you of the following:

  1. What personally identifiable information is collected from you through the web site, how it is used and with whom it may be shared.
  2. What choices are available to you regarding the use of your data.
  3. The security procedures in place to protect the misuse of your information.
  4. How you can correct any inaccuracies in the information.

Information Collection, Use, and Sharing 
We are the sole owners of the information collected on this site. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We will not sell or rent this information to anyone.

We will use your information to respond to you, regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary.

Unless you ask us not to, we may contact you via email in the future to tell you about specials, new products or services, or changes to this privacy policy.

Your Access to and Control Over Information 
You may opt out of any future contacts from us at any time. You can do the following at any time by contacting us via the email address or phone number given on our website:

  • See what data we have about you, if any.
  • Change/correct any data we have about you.
  • Have us delete any data we have about you.
  • Express any concern you have about our use of your data.

We take precautions to protect your information. When you submit sensitive information via the website, your information is protected both online and offline.

We also protect your information offline. Only employees who need the information to perform a specific job (for example, billing or customer service) are granted access to personally identifiable information. The computers/servers in which we store personally identifiable information are kept in a secure environment.


Our Privacy Policy may change from time to time and all updates will be posted on this page.

If you feel that we are not abiding by this privacy policy, you should contact us immediately via telephone at 412-832-2499