What are some of the consequences of bankruptcy?

If you file for bankruptcy, you may be forced to turn over your non-exempt assets (real property and personal property) to the bankruptcy court, and these assets will be used to help pay your creditors. Non-exempt assets are those assets that are not protected by state or federal laws (exemptions) that keep the assets from being turned over to your creditors. You should speak with an attorney to determine what exemptions, if any, apply to your assets in bankruptcy. Once the bankruptcy proceedings are successful, you will receive a discharge, which means that in most cases your prior debts will be wiped out. There are negative aspects of bankruptcy, however, including a poor credit rating that will make it more difficult for you to obtain a loan in the future.