Is it true that even when u apply for...

Is it true that even when u apply for bankruptcy u have to pay back all the mone

Posted in the Crewe Forum

baqinuquhob

East Berne, NY

#1 Dec 6, 2013
Is it true that even when u apply for bankruptcy u have to pay back all the money u owed?It depends.....
Depending on your amount of debt owed and what kind it is, secured or unsecured debt, a person may decide to declare only on unsecured (credit cards).
If you are only declaring for unsecured debts, once that petition has been put in, the court appoints a trustee to determine what assets you have that might be sold in order to pay something towards your debt. They can not use your vehicle or home in that determination. Things like artwork, jewelry, etc., that could be sold by the appointed trustee are items taken into consideration. If it is determined there is nothing of real value, then they don't bother. Your wages are not taken into consideration once everything is added up, your monthly expenses, versus debts, unless of course you are making a ton of money.
If you have not declared and a credit card company takes legal action against you (which is a great expense to them, most do not bother) they can garnish your wages if you are working to pay the debt monthly, but that is all they can do other than possibly forcing you to declare bankruptcy in an attempt to have assets sold towards repayment.
If you declare for credit card debt only, once the process is done, you would owe them nothing on the debt, it is wiped clean, although it will be on your credit report for 7 years. However, depending on what state you are in, it is possible after three months to obtain a secured credit card, charge a small amount each month and pay the balance in full every month, to start rebuilding your credit.
If you are declaring bankruptcy to include all debts, house mortgages, car loans, credit cards, then you would obviously lose your home, have to turn in your car etc.
If you are considering any kind of bankruptcy, it would be best to seek legal advise, usually the first visit is free. It will cost you money to declare but most attorneys are very reasonable, and it is wise to use one, rather than try to do it on your own.
There are also debt consolidation companies which can help by making monthly payments smaller. To find reputable ones, look up your state government sites. Use one that is accredited with your state and doesn't have hidden fees involved. You have to stay on top of that to make sure your payment to them is being paid out to your creditors, but that is a good alternative to bankruptcy if possible.
For some people, a clean slate and fresh start is the only way to go, but best to seek out talking to a debt consolidation company, sometimes they can not help and advise seeking legal counsel about bankruptcy. It all depends on how much debt there is and what the goal would be in declaring.
lurosatinem

East Berne, NY

#2 Dec 6, 2013
baqinuquhob wrote:
Is it true that even when u apply for bankruptcy u have to pay back all the money u owed?It depends.....
Depending on your amount of debt owed and what kind it is, secured or unsecured debt, a person may decide to declare only on unsecured (credit cards).
If you are only declaring for unsecured debts, once that petition has been put in, the court appoints a trustee to determine what assets you have that might be sold in order to pay something towards your debt. They can not use your vehicle or home in that determination. Things like artwork, jewelry, etc., that could be sold by the appointed trustee are items taken into consideration. If it is determined there is nothing of real value, then they don't bother. Your wages are not taken into consideration once everything is added up, your monthly expenses, versus debts, unless of course you are making a ton of money.
If you have not declared and a credit card company takes legal action against you (which is a great expense to them, most do not bother) they can garnish your wages if you are working to pay the debt monthly, but that is all they can do other than possibly forcing you to declare bankruptcy in an attempt to have assets sold towards repayment.
If you declare for credit card debt only, once the process is done, you would owe them nothing on the debt, it is wiped clean, although it will be on your credit report for 7 years. However, depending on what state you are in, it is possible after three months to obtain a secured credit card, charge a small amount each month and pay the balance in full every month, to start rebuilding your credit.
If you are declaring bankruptcy to include all debts, house mortgages, car loans, credit cards, then you would obviously lose your home, have to turn in your car etc.
If you are considering any kind of bankruptcy, it would be best to seek legal advise, usually the first visit is free. It will cost you money to declare but most attorneys are very reasonable, and it is wise to use one, rather than try to do it on your own.
There are also debt consolidation companies which can help by making monthly payments smaller. To find reputable ones, look up your state government sites. Use one that is accredited with your state and doesn't have hidden fees involved. You have to stay on top of that to make sure your payment to them is being paid out to your creditors, but that is a good alternative to bankruptcy if possible.
For some people, a clean slate and fresh start is the only way to go, but best to seek out talking to a debt consolidation company, sometimes they can not help and advise seeking legal counsel about bankruptcy. It all depends on how much debt there is and what the goal would be in declaring..
This site can help you finding the best option for you:@www.credit-solutions.info

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