can you declare for bankruptcy even if your a million dollar in debt so you dont have to pay it?

Answer 1

yea you can. my mom is not in debt like that, but she was misdiagnosed and ended up having thousands and thousands of dollars in med bills. she had to file. Her bankruptcy lawyer said some states are wanting to make it harder for some people to file. I hate it when people just buys things knowing they cant afford it and than file in order to have to not pay. for some people they get in high debt because of med bills.

Answer 2

No you cannot declare bankruptcy just to avoid debts. Your assets are liquidated in chapter 7's and goes towards payment and you make payment plans in chapter 13's. So you can't completely get out of the debt; however, you can only be required to pay a percentage of that debt through a bankruptcy. When the bankruptcy is discharged, the debt is thus fulfilled according to the court's specifications.

When declaring bankruptcy the debtors cannot call you to collect on these accounts; however, there are a few types of debts that cannot be discharged in a bankruptcy. You need to do some research on this or consult a bankruptcy lawyer. Bankruptcy is a little more complex than the question you asked and it varies from case to case based on circumstances and the types of debt.

You can file chapter 7's every six years and chapter 13s whenever (as long as there is no open bankruptcies filed); however, each one stays on your credit score for 10 years.

Also there are many regulations to prevent bankruptcy abuse in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Answer 3

Yes you can, but that debt load is probably too high for a chapter 13 (yes there are debt limits for chapter 13), so if you didn't qualify for a chapter 7 and aren't a family farmer you would have to file a chapter 11 (the most expensive chapter to file). You need to consult a bankruptcy attorney to find out what your best course of action is. Yes your credit will suck, but it would suck more to spend who knows how long trying to repay that million dollars and your credit will still suck.

Just to add:

Yes IF you have assets you they can be liquidated, if you have enough assets to pay the debt, there is no point in filing bankruptcy. Also the time between chapter 7's is 8 years not 6 years (6 years is old law).

You do need to consult an attorney about this.

Answer 4

Willie Nelson did,
I understand that Michael Jackson
may have to out of self defense,
I think Gary Coleman did after his parents
cleaned out his bank accounts,
this is not something that just hits the little guy.
Large corporations file bankruptcy all the time,
some try to get back on their feet and
some are so far in debt they
just go belly up. And as far as
your credit score is concerned,
this is the least of your concerns,
if you are in debt to the tune
of a million or so.
You probably don't want a line
of credit after that,
especially with all the hassles
you have up to the point of bankruptcy.
All the harassing phone calls
and the demands for payment.
All the threats of taking you to court.
Creditors hire folks to do their dirty work,
some of these people can be
real but-heads at times, but it,
just like everything else is
some one else's job.

Answer 5

Yeah you can declare bankruptcy to get rid of the debt. The downside is it destroys your credit score and you will have an extremely hard time ever getting a loan for anything.

Answer 6

Its much harder to file bankruptcy then it was just a few years ago. Good luck!

Answer 7

Definetely file for bankrupcy!!!
That way you'll never have to pay it back. It'll be erased.

Answer 8

I wouldn't bother,

Just don't pay.

Take out cash, and hide your assets!