Bellevue WA – We got an e-mail today with the subject line of “Bankruptcy will get your finances back on track.” People think that a bankruptcy will cleanse them of their debts. That is a myth. Let me explain why.
Yes, it’s true, that a Chapter 7 Bankruptcy will release a debtor of all debts. The problem is that the bankruptcy laws were changed in 2005.
This law makes it much harder to file a Chapter 7 bankruptcy. Now the judges have to steer debtors towards a Chapter 13. What does a Chapter 13 bankruptcy mean?
It means that a debtor will have to repay part (if not all) of their debts. In addition, the debtor has their finances managed by the bankruptcy trustee. And, the debtor has to pay that trustee!
If a person just stops paying their debts, then they See Enitre Story