What happens when you file for bankruptcy?

I was watching this on a show the other day, I didn’t quite catch the talk to well so I was wondering, what’s the process and what happens when you file for bankruptcy. Thanks in advance :)

Answer #1

Well, my unc did after he got in a car accident and it didn’t have to pay the other person anything after his lawyer made it so he was legally bankrupt. Im not sure what the other benefits are, but I dont think you can over own property or anything? Im not sure.

Answer #2

Your debts are all taken away (well, mostly), but it screws up your credit for seven or ten years…not sure which. You won’t get any loans whatsoever as a result, and you’ll have to give up a lot of your extra possessions to cover some of the costs. If you have a vacation home, for instance, or a few extra cars, they all get taken away. You’re left with the essentials and a lot of bad credit you can’t get back. You also have to pay stuff like back taxes or student loans that you still owe to the government. You don’t always come out with a clean state. Debt consolidation is a MUCH more logical option for people struggling with bills. The right negotiators can usually reduce the amount of debt you’re required to pay either through interest reductions or changes in the principle amount owed.With debt consolidation, you move all of your bills to one loan and pay off everything else. That makes it easier to remember paying, and it usually reduces the amount of money you pay a month. In time, people can get rid of their debts this way and build credit rather than screwing it up. Again, it’s a MUCH better way to go.

Answer #3

My husband went bankrupt a few years ago - it’s not as simple as just writing off all your debt. He had to pay a monthly fee until he paid off $1000 that went to the trustee, and he had to go to debt counseling for a full year. He fortunately didn’t have to give anything up, because everything we owned was bought and paid for (they can only take what you owe money on, or as Heaven said, if you have more than is necessary), but they also took his tax return so he didn’t see any of that.

Answer #4

A friend of mine recently filed and this is what he told me.

If you file for chapter 13 you get to keep everything regardless if it is paid or not. You go to a lawyer and they go thru all your debt and bills and come up with a monthly payment that you pay for a short amount of time.

So if all your debt is like 50,000 you pay very little of that and just for like a couple of years. All the creditors and collection agencies must stop harrasing you after you file or you can sue them.

You will still get those pre approved offers in the mail but with very poor terms.

Answer #5

You cannot open a business as long as you have not repaid your debt and all your earnings I believe are taken except what you require for subsistence, but I am not fully acquainted with the law

Answer #6

Bankruptcy is when a person or a firm thinks that they are in financial crisis, they go out for filing bankruptcy in related court.

Answer #7

I have filed for bankruptcy and it helped me clear out my debts and started to get fresh financial start with the help of Fresh Start Solutions Team who are really experts in Financial advices about this serious matter.

Answer #8

Filing for bankruptcy is really useful when resolving financial issues.

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