what happens when your in debt and file bankruptcy?
Lets say your an everyday person, and you have too much debt so you have to file bankruptcy, what happens to your debt and self? (is there a difference about what happens to credit card debt, and what happens to a utility bill debt?)
Posted February 9th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy, credit card debt, everyday person.
About a month after you file bankruptcy, a meeting with all of your creditors will take place to discuss your bankruptcy. This doesn’t mean that all of your creditors will attend. Perhaps none of them will attend; however, the bankruptcy trustee will definitely attend. If a creditor does attend, it is likely for the purpose of contesting your exemptions. The meeting generally lasts for an hour or less.
At this meeting, the bankruptcy trustee will go over your bankruptcy papers with you. The trustee might question certain items you’ve listed. In any event, he or she will look for discrepancies and inaccuracies in the amounts you’ve put down on your bankruptcy papers.
All of the property that you have not claimed to be exempt is given to the bankruptcy trustee at this meeting for liquidation. The bankruptcy trustee will then begin the process of selling off your assets to pay your creditors. You will likely be informed at this meeting that you are prohibited from selling, giving away or throwing away any of your property without the permission of the bankruptcy court.
Hope this helps
February 9th, 2010 at 2:43 amWhat happens is that this everyday person has had a habit of acting in a financially irresponsible manner and spent more than they could afford. So they will pay to file bankruptcy, ruin their credit rating, and spread out the repayment of their debts over time. Bankruptcy is not a quick, easy, painless FIX.
February 9th, 2010 at 2:43 am