Debt and Bankruptcy
Bankruptcy Law

What happens if you dont pay after filing bankruptcy?

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2010-09-20 22:18:45
2010-09-20 22:18:45

Assuming its a chapter 13 bk, if you dont make your plan payments the court will dismiss your bk- allowing creditors to resume collection efforts

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If you receive a pay raise after filing for bankruptcy, it will not change things. In fact, the pay raise will end up being surrendered.

The Bankruptcy Code refers to a business filing bankruptcy. If a business is unable to pay it's debt or pay it's creditors, the business or it's creditors can file bankruptcy. Upon filing bankruptcy, the business ceases operation, a trustee sells the assets, and then gives the proceeds to it's creditors.

No. If you are seriously considering filing for bankruptcy, then you should not use nor pay on your unsecured credit cards. This is due to the fact that you are going to be eliminating those debts. You will need that money to pay your court costs and attorney's fees when filing for bankruptcy.

Yes. Filing bankruptcy does not end your obligation to your offspring.

You are not supposed to sell any property after you file bankruptcy. Those assets can be used to pay your creditors.

If you are talking about someone who cosigned for your loan filing bankruptcy, As long as you continue to make your payments on time, nothing will happen. If you are talking about someone you cosigned for taking bankruptcy, you may very well have to pay this loan. Contact the lender.

No. You do not "declare bankruptcy" ON anything. You declare bankruptcy when you cannot pay your bills as they come due. You must list all your assets and all your debts. What happens after that depends on which title you are filing under, chapter 7, 11, 12 or 13.

Bankruptcy is the filing of a petition that claims your assets, and your inability to pay for them. Bankruptcy severely effects your credit, and is present on your credit for 7 years. During this time getting credit cards or loans can be very difficult.

If the inheritance is based on a death within 180 days of filing bk, the inheritance becomes part of the estate and the trustee will use it to pay your creditors.

Your question is not trivial, and there may be some variance due to asset equity thresholds and such parameters set by the state of jurisdiction for the bankruptcy filing. An excellent primer about filing chapter 7 or 13 bankruptcy is "The New Bankruptcy, will it work for You?" 3rd edition by Stephen Elias, published in 2009 by Nolo; 346.078 E42N Dewey decimal.

What, and leave me to pay your bills? Don't be a parasite on society!

Nothing spectacular happens. And you are still liable for the loan payments. Most bankruptcy filings are for Reorganization, not for 'going-out-of-business'. The 'filing' of bankruptcy is done in a Bankruptcy Court. A judge oversees the orderly progression of the bankruptcy. If the finance corporation has filed for reorganization, then you will continue paying them -- because they are not going out of business Otherwise, your loan and every other loan will be sold to another financial institution -- and you will pay that new company. No matter what, you still have to pay the full amount of your loan.

No. The amount of debt versus the ability to pay may factor in what type of bankruptcy will be accepted by the court.

Good question. It is important to know what you have to continue doing and what you are discharged of in bankruptcy and also to familiarize yourself with the different types of bankruptcy and their differences Generally speaking, if you are filing for chapter 7 bankruptcy then the majority of your debt will be discharged and you would not have to pay back your creditors. If you are filing for chapter 13 bankruptcy then you likely would but under your repayment plan you would probably be paying less that you originally are.

After filing bankruptcy, it is extremely important to be very careful to pay bills in full and on time. Missed payments or carrying credit card balances can negatively impact credit scores.

Your debtors BK effects your obligation to pay the same as your BK effects your creditors obligations to pay you. That is, not at all.

Your bankruptcy attorney can help you determine whether or not the special assessment was part of your bankruptcy proceeding.

When a business files for bankruptcy it basically means it can not repay the debts it owes to creditors. Generally a trustee will sell remaining assets and pay off creditors. The exact rules of what happens depends on what type of bankrupcty that is filed. In US for example there are Chapter 7, Chapter 13 etc.

No. Creditors do not care about divorce settlements concerning joint debts. The person not filing the bankruptcy will be held responsible for repaying any joint debt that was incurred during the marriage. The only protection for the ex-spouse is filing his/her own bankruptcy if they cannot pay the debt.

Companies that file for bankruptcy still have to pay their employees, if they have enough money. Employees are prioritized during bankruptcy procedures, so the company will have to pay for their work.

You should liquidate the company after filing bankruptcy. If you do it prior to filing, it might be seen as an attempt to commit fraud and not pay off debtors. You would be safer to file and then follow the directions necessary. Consult an attorney in your area before making any big moves!

The amount you pay in Chapter 13 bankruptcy depends on your state. In general, you will not have to pay all the debt you owe.

If her name is on a loan that you file bankruptcy on than she would then be responsible for that loan. Filing a bankruptcy only gets your name off the loan(s), you would both need to file together.

Sure if you can find someone who will give you credit. If you pay cash the judge might make you sell it during bankruptcy to satisfy other unpaid creditors.


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