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Bankruptcy means a legal person (which may be a company) can not meet their debts. This means that Banks are likely to be creditors and that while they do get "first call" on any assets, there is a likelihood that they will not recover all the money they have lent to the legal person. This means the banks could lose money. However they factor this possibility in to all their lending and make overall charges to cover such an eventuality. They also make sure that before they lend, to a company they have a good Idea that the company is "sound".
Wiki User
∙ 7y ago
Wiki User
∙ 16y agoThe debtors is th one who files BK. Basically, it's pretty simple: all of their assets are used to pay off all of their debts. If they don't have enough assets to pay all the debts, the excess debt may be dismissed by the court. Some debts (which are whata debtors owes creditors), may be paid in full and some only in part. If the debt is secured by a specific item, say a car or house, the money from the sale of that item will go firt to that specific creditor. Some assets (like certain retirement accounts, workers tools, kitchen set, very personal things) as well as certain debts (like student loans, court judgements, child support) are not included in the BK process.
Wiki User
∙ 9y agoBankruptcy raises creditors expenses because people get out of paying what they owe. It causes the price of everything to go up because of those who don't or can't pay their debts.
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Can a person work legally if he file bankruptcy?
Yes. Filing bankruptcy does not affect your work status generally speaking.
If you filed for bankruptcy four years ago while previously married and you remarry how will it affect your new spouse's credit?
It will have no affect on her credit. Only the person(s) who are a party to a bankruptcy have it noted on any crediting reportage.
Can bankruptcy affect your IRA?
NO
Does bankruptcy affect eic eligibility?
no
How would bankruptcy affect a license to sell insurance?
Bankruptcy would not affect your license to sell insurance in any way. It does not affect your ability to continue to make money.
If a person has filed chapter 13 bankruptcy and their financial circumstances change what can they do?
It is very important that the BK participants contact the bankruptcy trustee as soon as possible when they experience changes that directly affect the filing status.
Where can you find information about corporate bankruptcy laws?
Does corporate bankruptcy affect personal credit?
Will a cosigner's credit be affected if they cosign for someone who has a bad credit score because of a Chapter 7 bankruptcy?
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.
Does file bankruptcy affect tax return?
No
Will bashas bankruptcy affect your pension?
no gehegle
Can you get a marriage visa from Australia if you have filed for bankruptcy?
In what ways affect a bankruptcy your Australian marriage visa?
How does my poor credit and or bankruptcy affect my children getting student loans?
It does not affect them.
