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What happens when a person files for bankruptcy?

We are in our mid-40's in quite a bit of credit card debt. I believe we need to pay it all back, but was curious as to the consequences of filing.

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Anonymous

Asked by Anonymous at 11:17 PM on May. 19, 2010 in Money & Work

Answers (6)
  • talk to a lawyer, there are several section.. if you want to keep your house and whatnot.. do not go section 7 bankrupt
    kittenripmaygo

    Answer by kittenripmaygo at 11:53 PM on May. 19, 2010

  • You main residence is protected in bankruptcy. There are different types, one all your debt is forgiven, the other is partial. If you are insolvent, meaning you owe more than you're worth you are a candidate for bankruptcy. After you file your credit will be back to the starting line again and it will take you a few years to get it up. Talk to a professional in your area as this can be a confusing matter for most folks.
    Anonymous

    Answer by Anonymous at 12:00 AM on May. 20, 2010

  • Depends on how much debt you have. Credit cards are considered unsecured debt and would be wiped away if you were to file for either chapter 7 or 13. If you file chapter 13, you are required to pay back all secured debt that you plan to keep. You will lose your tax returns during your bankruptcy. They use that money to pay toward the unsecured debt but if you don't get a tax return, you are not required to pay anything. If your income is less than your out going and you are more than 3 months behind on all credit cards and/or other bills then you might qualify. Find an attorney. They will help you with any questions you could have and give you honest feedback on whether bankruptcy is right for you or not.
    Anonymous

    Answer by Anonymous at 12:05 AM on May. 20, 2010

  • filing bankruptcy is the last thing I'd do!! We were looking into and researching it man if you do good luck getting a new car or a home for that matter cuz it won't happen. it takes 10 yrs. to fix ur credit I would do a consolidation loan first see how that works out then if ur still in a bind file bankruptcy but keep in mind this will greatly affect your future purchases on credit
    chica679

    Answer by chica679 at 2:44 PM on May. 21, 2010

  • Messes up your credit for 10 years, but also hurts people that don't default. Rates go higher for everyone when someone blows off their obligations. In my opinion it's WRONG to do it.
    Anonymous

    Answer by Anonymous at 5:14 AM on May. 23, 2010

  • You got yourself into trouble, you need to get yourself out. It's called PERSONAL RESPONSIBILITY.
    Anonymous

    Answer by Anonymous at 5:16 AM on May. 23, 2010

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