answersLogoWhite

0


Best Answer

There are several different types, or chapters, of BK.

Probably the main aspect of each is that the court protects you from collection actions of your creditors while a process to resolve your financial problems is decided. The court normally appoints a trustee to oversee your affairs, and you are restricted from entering or changing financial agreements without their agreeing.

Some require a payment plan be established where for some period of years, you pay a percent of your earnings to the trustee for him to use to pay your creditors. You may also have to attend financial counseling sessions and such. If, after complying with the terms of the arrangement there is still debt unpaid, the court may dismiss it. Of course, certain types of debts are not able to be discharged (like child support), and ones that have a secured interest, like a mortgage on a house, have the ability to have the asset sold to pay the debt too.

The important thing is the BK involves all your debts and all your assets...your assets are used to pay the debts...you are not just relieved of the debt...and again, secured debts get first call on the receipts from those specific assets.

The purpose of BK is to eventally give you a "fresh start" without debts....that isn't to say a head start...no debts but the assets they provided.

User Avatar

Wiki User

15y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

15y ago

Of course. In fact, more than ever. The bank or company files bankruptcy, which effects it's debts...not YOURS. In fact, it's creditors, (people it owes), and the Court in charge, now take the assets of the Bankrupt to pay for the debts as best they can. Your debt to the bank is an asset they want to use.

This answer is:
User Avatar

User Avatar

Wiki User

14y ago

Not only does it not have to pay, it will not pay your debts. Debts are not extinguished in bankruptcy. The creditors are prohibited from collecting them, assuming you get a discharge. They still exist in some world of uncollectability.

This answer is:
User Avatar

User Avatar

Wiki User

14y ago

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.

This answer is:
User Avatar

User Avatar

Wiki User

10y ago

If you file chapter 7 or 13, your loan may discharge in bankruptcy. This is not an automatic process you need to prove to the bankruptcy court that repaying your loan would cause undue hardship.

This answer is:
User Avatar

User Avatar

Wiki User

15y ago

The BK discharged the debts noted in it. They are no longer payable.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Do you have to pay back creditors after you file bankruptcy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the Bankruptcy Code?

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.


What are the two chapters a business can file bankruptcy under?

You can file bankruptcy for two possible reasons: you are unable to pay your debts or your creditors file for bankruptcy if you owe them more than 1000 dollars.


How soon after receiving a settlement from an accident can you file bankruptcy?

This will be considered an asset. You cannot file bankruptcy if you have a number of assets that can be used to pay your creditors. Depending on the amount of the settlement, you should wait years to file bankruptcy.


What happens if you sell your secured debt you file bankruptcy and the original creditors want the items back?

Assuming you mean you sold the item that was security for the debt, you violated the contract and may have committed a crime if you did not pay the debt off with the proceeds. The creditors can ask the bankruptcy court to deny your discharge or dismiss your case, and charge you with fraud, a federal crime. if you failed to disclose the sale in the bankruptcy documents.They may not get the items back, but you will have to pay the creditors what you owe. Even if you land in jail or federal prison, you will have to pay the debt off.


Will you get rid of credit card debt with bankruptcy?

No. If you file bankruptcy, you are basically telling the creditors that you don't have any funds to pay them. Your finances are being held by the court and the lawyers will tell the creditors that you filed bankruptcy. You are still responsible for the debt. WRONG! If you file bankruptcy and file a chapter 7, if the judge approves your appeal all your credit card debts are erased, and creditors have to stop calling and harassing you. If you file a chapter 13, you are still responsible for a certain portion of your debt, to be paid over a 5 year period, and creditors have to stop calling and harassing you.


Would you have to pay monthly notes in filing chapter 7 on my vehicle?

You don't file bankruptcy "on your vehicle." You file bankruptcy to discharge all your debts. You don't get to pick and choose which creditors. But, secured creditors either have to continue to be paid or you have to surrender the collateral, in which case the balance due on the secured note would be discharged.


Is freedom finance a legimate debt management company?

No! They promise to pay your creditors and then don't! Then, the the creditors sue you in court and get judgments, leading to checking account garnishments and payroll garnishments. Then the only solution is to file bankruptcy.


What is chapter 7?

Chapter 7 bankruptcy protects you from creditors and sells your non secured assets to pay the creditors that you owe. If you do not own an assets, you will not have to pay the creditors and the debt will be forgiven.


Do you still pay rent if you file for bankruptcy?

Yes, you still pay rent, because being bankrupt does not entitle you to free housing.


If you cosigned a car loan for your daughter and the car got repossessed do you both have to file for bankruptcy?

Having a car or other item repossessed does not mean anyone has to file for bankruptcy. Bankruptcy is to protect you from creditors and should be sought if you owe more than your net worth and have no reasonable prospect of being able to pay what you owe.


If you filed bankruptcy and one of the creditors had a lien on a car do you get the title back after the bankruptcy is final?

It really depends on the type of bankruptcy petition you file. If you file for Chapter 7 bankruptcy the creditor who put the lien on your car may be able to take your vehicle. If you file for Chapter 13 bankruptcy you'll have the opportunity to make payment arrangements with your creditor and in that case you should get the title back after all of your payments are made and your amended. contract with the creditor has been fulfilled.


What is filing bankruptcy?

Bankruptcy is a legal tool individuals and companies use when they are no longer able to repay debits. In the United States their are two sorts of personal bankruptcy. 1) Chapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors.