Who pays the debts of the people who file bankruptcy?
Where do all of the debts go when a person files for bankruptcy? Do the people who are owed money absorb the unpaid debt, or is that left up to taxpayers?
Posted February 20th, 2010 in Bankruptcy Q and A. Tagged: bankruptcy, debts, money, person files, taxpayers, unpaid debt.
Those who are owed money absorb the debt, and indirectly pass it on to other consumers as they need to raise prices/interest rates/other requirements in order to make up for the lost assets.
February 20th, 2010 at 1:14 pmcreditors eat it. that’s why interest rates are so high. so, if i’m not mistaken, consumers cover the cost.
February 20th, 2010 at 1:14 pmIts up poor saps who pay our debts who are left holding the bag. Imagine what kind of interest rate everybody would get if people paid debts on time all the time. Be a heck of a world wouldn’t it.
February 20th, 2010 at 1:14 pm