The primary advantage is the discharge of all of your debts.  Imagine having to pay $250 or more per month just to cover the minimum monthly payments on your credit cards.  Now imagine saving instead of spending those $250 after you have filed bankruptcy and not having the stress and headache of having to pay those debts every month. 

Another advantage to filing bankruptcy is stopping all legal proceedings that creditors have filed against you.  For example, some creditors will sue you to garnish your wages by way of a wage execution order signed by a Judge.  Each creditor has the right to garnish your wages. Bankruptcy also stops all harassing telephone calls creditors make to peoples’ homes and jobs. The major disadvantage to filing bankruptcy is the negative impact it has on your credit history. The three major credit reporting agencies in this country will maintain a record of your bankruptcy in their files for at least 10 years. However, this does not mean that you can never have another credit card again. You may still obtain credit cards but your interest rate will be higher than someone who never filed bankruptcy. Also, given that bankruptcy is more common now than in years past, many banks, mortgage companies and other creditors have relaxed their requirements to qualify for credit, offering some clients credit within two years of filing or even sooner. Don’t be surprised if after you’ve filed for bankruptcy you begin to receive credit card solicitations in the mail again. But, remember, there is always the danger of falling in the same debt cycle again.