There are several advantages you can expect if you make the decision to apply for Chapter 7 bankruptcy protection. However, filing for bankruptcy does have at least a few unpleasant consequences.

The biggest impact that a bankruptcy can have is on your credit record. You can expect the bankruptcy to remain on your credit record for a period of 10 years. During this time, you may find it difficult to purchase a home, buy a car, or purchase life insurance.

When you file for bankruptcy protection, you can expect to lose at least some of your luxuries. You will also automatically lose your credit cards. Once you file for bankruptcy protection, you may not be able to obtain a mortgage in the short term. However, you may be eligible for a mortgage again after five years.

Additionally, filing for bankruptcy does not mean all of your debts are completely eliminated. Some kinds of debt like student loans may still remain on your record.
Besides, there's the emotional impact of filing for bankruptcy. For most people who put off a declaration of bankruptcy, the reason is very often simply a reluctance to admit defeat.

The above reasons are not meant to discourage you if you are considering filing for bankruptcy. There are several benefits to filing for bankruptcy protection, including the elimination of harassment by creditors. Los Angeles bankruptcy lawyers would however recommend that a person filing for bankruptcy is well aware of all possible consequences of these actions.

The good news is that almost none of these consequences will actually last over the long-term. After a few years, you may be able to get your life back on track, and eliminate the bankruptcy from your record.