Chapter 7 bankruptcy Chino
The Drawbacks of Filing for Bankruptcy Under Chapter 7? It's not for everyone to file for Chapter 7 bankruptcy. Even if Chapter 7 bankruptcy appears to be the best option for you, it may not be if you take into account some of its drawbacks. Of CHAPTER 7's drawbacks • Limitation on the Amount You Can Earn In order to qualify for Chapter 7, your income must fall below a certain threshold. A Chapter 7 bankruptcy will be converted to a Chapter 13 if you have a large amount of disposable income. • Low FICO Score Even if you file for Chapter 7 or Chapter 13 bankruptcy, your credit rating will be affected. For seven to ten years, your bankruptcy will show up on your credit report. For a period of time, you will not be eligible for new credit or loans, and you will be required to pay exorbitant interest rates if you do qualify. For people with credit scores below 600, bankruptcy has little impact. In reality, it will help you improve your grades within a few years. • ...