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Which bankruptcy Do you not pay back?

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtors nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.

What are 4 major reasons why someone would file bankruptcy?

The common causes of bankruptcy include: Divorce. Expensive Medical Bills caused by a disability or illness. Poor Financial Management related to student loans, purchasing a car or home, etc. Reduced income or job loss. Unexpected emergencies, such as a car breaking down or catastrophic damage to your property.

What should you not do before bankruptcy discharge?

Things you should NOT DO immediately before filing for Bankruptcy Dont Transfer Property or Money. Dont Payoff Certain Creditors. Dont Continue Using Your Credit Cards; No Cash Advances. Dont Deposit Extra Money into your Bank Account. Dont File any new Lawsuits. Dont Accept Future Payments.

What is the final step in a bankruptcy?

Step 6: Notice of Discharge After you finish all of this, your debt will be discharged. In a Chapter 7 petition, this occurs after the trustee looks over the bankruptcy filing and finds no major problems.

What are the two types of bankruptcy filings?

More than likely, you would only be dealing with the two most common types of bankruptcies for individuals: Chapter 7 and Chapter 13. (A chapter just refers to the specific section of the U.S. Bankruptcy Code where the law is found.2) But well take a look at each type so youre familiar with the options.

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