When a person files for bankruptcy,?
When a person files for bankruptcy,do the credit card companies/ banks (or any other institution that person may owe money to) collect on the debt? For instance, if John has acquired ,000 in Credit Card debt. Once he files bankruptcy, does the Credit Card Company lose out on the money or does it some how acquire some or all of it? Is foreclosure and seizure of property after bankruptcy done for the purpose of paying off any debt?
Posted June 18th, 2010 in Bankruptcy Q and A. Tagged: bankruptcy, banks, credit card companies, credit card company, credit card debt, foreclosure, money, person files, seizure.
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June 18th, 2010 at 8:17 pmhttp://www.loan-house.info/2009/09/choosing-right-bankruptcy-attorney.html
ok, my step-dad filed for bankrupty a couple years back and no the charges drop like so far, the debt will drop to a certain ammount and then youll have three months delay of the forcloseure if the bank is trying to forclose on ur property so then you can get ur money ready and stuff
June 18th, 2010 at 8:17 pmThat would depend on the type of bankruptcy someone files for.
If you file of Chapter 13 (reorganization) bankruptcy, you will come up with a payment plan to pay off your debts given the amount of income you expect to make. Some debts may be reduced or forgiven, but most will be paid back over time. This would be a good option if you have a steady income but need some protection from creditors or restructuring of the terms of your debt.
If you file for Chapter 7 (liquidation) bankruptcy, your assets are liquidated and used to pay your debts. All unpaid debts are usually forgiven. Some of your assets are protected from liquidation. The list of what is protected varies state to state but usually involves things like a place to live, a form a transportation, life insurance, and occasionally retirement assets. Your debts are paid in an order determined by the bankruptcy court, usually starting with secured debts (like a car loan or mortgage) and ending with unsecured debts (credit cards). Ordinarily, a credit card company would get paid, at most, cents on the dollar for debt that they are owed.
Of course there are some other stipulations. Certain types of debt like student loans are not forgivable in bankruptcy and you would still have to pay them off. Usually any debt incurred within thirty to sixty days (depending on your location) is not forgivable. This prevents you from maxing out your credit cards and immediately declare bankruptcy. Any debt which is obtained illegally or fraudulently is also not forgivable in bankruptcy. If you obtained a loan using false information, you most likely will have to pay that off.
I hope this answers some of your question. Bankruptcy rules vary state-to-state so it would be prudent to look at your state’s rules and regulations before considering bankruptcy.
June 18th, 2010 at 8:17 pmMost companies have insurance against defaults. But, for the company, the more defaults, the higher the primium. Not good. But, to make it short, you are always going to have to them, eventually. I think bankrupcty in just a rotten way of saying you could not "AFFORD IT " and people want to drag you through double l hockey sticks.
June 18th, 2010 at 8:17 pmIt ain’t supposed to be that way. In Reality, bankruptcy is putting all the cards and figuring it out, It is really bad it takes bankruptcy to understand, but is.
Honesty is not reconized here, but, the truth is. Coming forth and being honest about saying you can’t afford something sould be held high, not shot down.
Personnaly, I would go the easy way out. If it is easier to have assests taken away, credit ruined, which is inevitable, because it is reality, if you can’t afford it; you shouldn’t even try to own it.
Or just walk away from it all.
Depends on what chapter the bankrupt person is filing.
June 18th, 2010 at 8:17 pmSome have a repayment plan
Some absolve the debtor of all obligations