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Bankruptcy is protection from people who are owed money. When a person has so many debts that they cannot pay them in a timely fashion, they are liable to their property being seized by the creditors, as well as wages being garnished. To prevent a person from losing their means to survive, laws have been enacted which allow a person to go before a judge and arrange for some of their debt to be forgiven, in return for surrendering some of their assets and income. This allows creditors to receive some compensation for the money they have lost, and the debtor to continue to work and generate income. These laws grew out of practices such as putting people who could not pay their debts in prison, where they could not earn any money at all, and taking a persons house for a debt which totaled a small fraction of what the house was worth.
Wiki User
∙ 17y ago
Wiki User
∙ 12y agoThe purpose of bankruptcy is to allow for a way for an individual or business to get out from under mounting debt that is so large that they cannot move forward financially in any manner. It really hurts credit, obviously, but the idea is that after all the debt is settled, the person that filed can start moving in a positive manner financially. And the only way to help with your credit post bankruptcy is to learn certain skills about managing money and strategically and responsibly engaging in forms of credit and payback.
Wiki User
∙ 14y agoYou would generally file for a bankruptcy to get rid of debt. If you have more debt then you can handle and you are constantly getting deeper and deeper in debt then a bankruptcy might be for you.
ADDITIONAL SPECIFIC INFO:
You would want to file bankruptcy if you are overwhelmed by debt and harassed by creditors. If you are unable to pay your bills you may be eligible for relief under Chapter 7, Chapter 13, or Chapter 11 bankruptcy. A Minneapolis bankruptcy attorney will answer your questions. As soon as you file for bankruptcy:
* Harassing phone calls stop!
* Mortgage foreclosure stops!
* Repossession of your car or furniture stops!
* An attempt to garnish your wages stops!
* You keep your personal property.
* You keep the tools you need to make a living.
Wiki User
∙ 14y agoit is costly and you require legal assistance.
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You owe your sister money can you file bankruptcy on that loan?
If you file bankruptcy, you file bankruptcy on everything. You can not file bankruptcy on one loan.
What is the Common reason why people file bankruptcy?
Career Changes
Did Deltona Corporation file bankruptcy?
No they never did file for bankruptcy
How many year after you file bankruptcy can you file bankruptcy aging?
If you are talking about a Chapter 7 bankruptcy, It takes 7 to 9 years after you can file bankruptcy again.
Did ballenger construction harlingen Texas file for bankruptcy?
No, they did not file for bankruptcy.
Why did General Motors ford and Chrysler file for bankruptcy?
They did not file for bankruptcy.
Do both parties on a joint mortgage have to file bankruptcy on a joint mortgage?
No, both parties on a joint mortgage do not need to file bankruptcy. They can file a joint bankruptcy or a single bankruptcy.
Why do divorced men file for bankruptcy?
PEOPLE file for bankruptcy because of economic circumstances. Divorced men would have less motivation to do so than many, as child support is a debt that cannot be changed by bankruptcy.
Does bankruptcy show as zero balance on ChexSystems?
Yes, if you file bankruptcy your file needs to be updated to show you no longer owe. If it does not you will need to file a dispute with chexsystems and have the error corrected. Some people have been removed from chexsystems after a bankruptcy. They do NOT have to remove you but they must have an accurate file showing a balance of zero
What companies have file bankruptcy in 2008?
what companies did file a bankruptcy in 2005,2006 and 2007.
Can I file your cell phone bill on bankruptcy?
No, you cannot file my cell phone bill in a bankruptcy. However, you can file YOUR cell phone bill in a bankruptcy.
Who can file for bankruptcy in Wisconsin?
Anyone who is a resident of the state can file for bankruptcy in Wisconsin. There is no restriction on who can file, only for which chapter they can file in.
