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Additional Details
im a kid well 9... |
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pεяky lil' zøмвïesϟ | if someone file for bankruptcy, does that mean their debt been paid off? |
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HDRIDER
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It means they are a deadbeat! |
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mark
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When you file for bankruptcy, you list all your assets and liabilities. You are allowed to keep certain assets like your $400,000 IRA. In texas you are allowed to keep your 10,000,000 ranch but not the oil well. Other states allow you 50,000 of equity in your home and 5,000 equity in your car. Maybe 2,000 in cash.
You are allowed to keep your house or car providing you continue to make payments. Some people buy a new car before they go bankrupt because later their credit score will suck.
Then the creditors take what ever is left. Your 17th century paintings, the place up in vail.
Your debt is now discharged, they can never legally collect it. But if you screw Wells Fargo, they will never loan you money again. Even after 20 years, they will remember. |
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Rick B
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No. That means they have chosen to walk away from their debts and leave the companies to which they owed money high and dry. This is one of the reasons that we have to pay so much for products we buy. |
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Amy Crackhouse
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Their debt paid off by whom??
The debtor doesn't need to pay for the debt anymore, but it doesn't mean the debt is automatically paid off because if the debtor doesn't pay, who else would pay on behalf of the debtor?
However, all of the debtor's assets are measured and evaluated, and then the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations. well in fact, the debt is partially paid for by selling everything the debtor owns. He will be left with basically nothing after the bankruptcy process is done. |
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