The trustee receives a fee for performing such services, computed as a percentage of all funds received for disbursement under a plan. The advantages and the disadvantages of bankruptcy will vary with each case. Creditors may not commence most legal proceedings against an individual who has filed for bankruptcy, nor may they continue most legal proceedings already in process, except with court approval. In general, wages, earnings and most property acquired after bankruptcy are not subject to claims of pre-bankruptcy creditors. Certain liens and involuntary transfers, such as garnishments, may be avoided if timely action is taken.
Bankruptcy filings are a matter of public record.
Filing a petition may be noted by various commercial credit reporting companies. A filing remains on a person's credit history records for up to 10 years, possibly making it difficult to obtain loans, some types of credit, or other economic benefits. For some, the proceedings may be embarrassing since a petitioner must submit to questioning and detailed financial disclosures. Chapter 7 debtors lose the right to receive another Chapter 7 discharge for six years. Filing forms and paying fees to the court clerk.