all I know is bankruptcy is claiming that you have no money. What's the difference if you don't do so? You STILL will have no money! Doesn't make sense to me, so I think I have the wrong definition of it. Can someone explain fully what claiming bankruptcy is all about?
2007-03-05 05:36:13 · 8 answers · asked by Ryder 1 in Business & Finance ➔ Personal Finance
There are two main types of bankruptcy for consumers (aka personal people, not businesses): chapter seven bankruptcy and chapter 11. In chapter seven, you claim complete bankruptcy which wipes out all unsecured debts. In chapter 13, you work out a repayment plan that allows you to pay back some or all of your debt, while freezing interest over a period of no more than five years.
2007-03-05 06:42:51 · answer #1 · answered by faithsmom 3 · 1⤊ 0⤋
"The primary purpose of bankruptcy is: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment.
Bankruptcy allows debtors to be discharged from the legal obligation to pay most debts by submitting their non-exempt assets, if any, to the jurisidiction of the bankruptcy court for eventual distribution among their creditors. During the pendency of a bankruptcy proceeding the debtor is protected from most non-bankruptcy legal action by creditors through a legally imposed stay. Creditors cannot pursue lawsuits, garnish wages, or attempt to compel payment".
WIKIPEDIA
2007-03-05 13:51:28 · answer #2 · answered by ROL 1 · 0⤊ 0⤋
its paying off your creditors but you still have to pay so much per month for the bankruptcy. if you have a lot of hospital bills and such some people file. But before you do I would suggest you check out these programs that I bought that have helped me improve my credit and helped me stay out of bankruptcy. Although they have helped my daughter who did file bankruptcy also. I have found on the net that there are a lot of things about fixing your credit you can buy some good some not. I started to use one of those companies that help with consolidation but, I bought these programs that have worked wonderfully. If you follow their easy instructions you will improve you credit and credit score. They even have the forms or letters you should use to send to the credit bureaus. I even bought some for my daughter who filed bankruptcy and she has improved her credit also. They teach you everything, how to increase your fico to reading your report and how to go about cleaning your report. I try to tell everyone about these programs because they are so good. I feel I have gotten my moneys worth buying them. The address is below..
2007-03-05 13:43:23 · answer #3 · answered by Anonymous · 0⤊ 1⤋
You should go to the source. They wrote the book on Bankruptcy so read it. This is the best way to know what it is. Also, anyone who files for it, should know that they will still have to pay all their debts. Everything changed since 2005.
2007-03-05 13:55:12 · answer #4 · answered by Rothwyn 4 · 0⤊ 0⤋
I could explain it in detail here but good explanations are on the "resources" link of my website:
http://www.bankruptcy.lakelaw.com
2007-03-07 01:39:23 · answer #5 · answered by DLeibowitz 5 · 0⤊ 0⤋
http://en.wikipedia.org/wiki/Bankruptcy
2007-03-05 13:41:55 · answer #6 · answered by mrrosema 5 · 0⤊ 0⤋
Because they loan you money are put you on welfare r something like that
2007-03-05 13:39:07 · answer #7 · answered by Anonymous · 0⤊ 1⤋
maybe this resource would help
2007-03-05 14:31:57 · answer #8 · answered by polished 1 · 0⤊ 0⤋