There can be a lot of disadvantages to filing under chapter 7. For example, it can really do a number on your credit report and can stay on it for 10 years. You could also lose a good portion of your property, including luxury items, and you could lose all of your credit cards. You are also barred from filing another bankruptcy 7 for the next six years, meaning that if something worse comes along you will not have that option to fall back on anymore.
Although there are many disadvantages to using this method of declaring bankruptcy, there can also be a lot of advantages. The first one is that the entire process only takes around three to six months, meaning that you can get relief from debt quicker than some other bankruptcy options. Some things that you own can be exempt from bankruptcy, and sometimes people can even keep the property that they need. You can even get new lines of credit within three years of filing, however you will have to think about the higher interest rate. There are also ways to get around the inability to apply for a new mortgage, as some lenders specialize in helping those with bad credit.
There can be a lot of pros and cons to weigh when it comes to deciding whether declaring bankruptcy under chapter 7 is right for you. There are some other options out there, so depending on your situation there may be another choice that is more suited for you than filing under Chapter 7.