Question by ccccc: what happens when you file for bankruptcy?
so i heard something about my aunt & bankruptcy.. what happens? i mean, shes old, shes like in her late 40′s and she has a son thats 20 it think? and he’s born like, slow. i dont know how to explain it. and her husband is .. well, i dont know anything about him. but what happens when u file for bankruptcy???
Best answer:
Answer by rpg
Assuming you are in the USA:
Bankruptcy is a court proceeding.
Hopefully your aunt will obtain legal counsel from an attorney rather than from a website, many of which have very bad info that can cause major problems for the debtor.
There are several different kinds of bankruptcy. Your aunt’s attorney will review her complete financial situation with her and will review the options available to her, and advise her regarding what the attorney thinks is in her best interest. It will be up to your aunt to decide whether or not to take that advice.
Many of the things you may have seen or read or heard about bankruptcy are not true. For example, she won’t (necessarily) lose her home or her car. She absolutely won’t lose “everything she owns.”
Bankruptcy is an orderly way of resolving unrepayable debts. Its intent is to give the debtor a fresh start with a clean slate.
Her bankruptcy will be reported by credit reporting agencies for 10 years. However it will take far less time than that for her credit score to rebound enough so that she should be able to obtain decent credit for normal things such as buying a car when she needs one, or obtaining a credit card to be used for purchases which she intends to pay over time.
Bankruptcy is nothing to fear. Millions of Americans file bankruptcy every year. You probably know some who have, but perhaps just are not aware that they filed bankruptcy, perhaps because they have not chosen to talk about it with friends and acquaintences.
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