What Happens When You Declare Bankruptcy


What is Bankruptcy? When debts become so overwhelming that individuals, partnerships, and businesses believe they can't pay them, they declare bankruptcy. Judges and court trustees examine the assets and liabilities of those who qualify. It is the court that decides whether the debts are discharged, meaning the ower is no longer obligated to pay. Additionally, the court could dismiss the case if it believes the business or individual has sufficient assets to cover his or her bills. Bankruptcy law was designed to provide people with an opportunity to start over after a financial collapse. No matter what the reason [...]