Filing for a Chapter 7 bankruptcy is an option for some people but we urge you to really do your research before attempting to take this route. A Chapter 7 is going to cost you financially somewhere between $1,500 and $4,000 to retain an attorney. You may not also qualify for a Chapter 7 and may get rolled into a Chapter 13 where you have to repay your debt in payments. This may also result in the payments be garnished right out of your monthly paycheck.

You could lose your assets or even your business if you own one. A chapter 7 is public knowledge and will be known by anyone that wants to find out. You also have to attend a credit counseling class and attend a financial management education class. A chapter 7 will remain on your credit report for 10 years heavily damaging your credit. Chapter 7 should always be viewed as a last resort solution to your debt problems.