Avoid Bankruptcy

I was looking at some other debt related blogs on Blogger and came across Debt Consolidation Management Assistance. Here is a snippet of one article that caught my eye:

Here is a snip:

Avoid Bankruptcy: You May Have to Pay the Debt Back Anyway

The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In some cases, the latter definition may be appropriate, but in a good number of scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.

Click here to read the whole article.

I was unaware of that whole scenario. Good to know....