---
title: What are the disadvantages of choosing bankruptcy?
description: There are five main disadvantages of choosing bankruptcy.
---

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# What are the disadvantages of choosing bankruptcy?

## There are five main disadvantages of choosing bankruptcy.

1. Various duties must be completed to earn your discharge from the bankruptcy process, if duties are not completed, a Court hearing is required and the Court will impose conditions on your discharge.
2. It's required to report your income every month and if your income improves, your bankruptcy payments may increase.
3. If you become entitled to a windfall (lottery, inheritance, etc.) while bankrupt, funds are payable to your Trustee.
4. Creditors or the Superintendent of Bankruptcy can object to your discharge resulting in a Court hearing and the Court may impose conditions on your discharge
5. It has the least favourable impact on your credit rating, and a lifelong declaration when making future credit applications.

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