Depending on a debtor's financial situation and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits.   Those considering bankruptcy should be aware of the following:

Filing for bankruptcy protection is not free.  Please refer to the Fee Schedule Not all debts are dischargeable.

Example:  Secured creditors retain some rights which may permit them to seize take property, even after a discharge is granted.   Spousal and child support obligations, most student loans and most tax debts are not dischargeable.

Within 14 days of the filing of the bankruptcy petition, schedules of the debtor’s assets and liabilities must be filed.   Failure to timely file the appropriate schedules may result in dismissal of the case and the barring of the debtor from filing again for 180 days (six months).   11 U.S.C. §521 mandates that a chapter 7 or chapter 13 case “shall be automatically dismissed effective on the 46th day after the date of filing of the petition” if the debtor fails to file “all information required by 11 U.S.C. §521(a)(1)” within 45 days of filing. If the case is dismissed and a discharge is entered by the court, the debtor is banned from being granted another discharge in chapter 7 and 11 within eight years. Fraudulent information or acts by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense.