Who Pays the Bills when you File for Bankruptcy?

You will be able to eliminate multiple debts at once if you file for bankruptcy. This is a great option for people who have debts that they are unable to deal with on their own. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the options that you have. The type of bankruptcy that you file for will determine who pays the bills. A Brooklyn bankruptcy lawyer will be able to help you figure out what you qualify for and walk you through the bankruptcy process.

Chapter 7 Bankruptcy

If you file for Chapter 7 bankruptcy, then your assets may be sold in order to pay off your debts. However, there are some assets that are protected by law. This prevents you from losing everything that you own. The bankruptcy trustee or judge will determine how much you will have to pay.

If you do not have any assets, then your creditors can still get paid. The debt will be written off as a loss. The creditor can recoup the losses through revenue streams and taxes. You will still be the main person who is responsible for paying for your debt if you file for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to consolidate your debts and pay the debts back over the course of three to five years. Your debts will be re-structured instead of eliminated. You will also be able to get your debt reduced.

You will pay the bankruptcy trustee, and your payments will be re-distributed to your creditors. The lenders will stop harassing you, and you can budget better. Your income will determine how much you will have to pay.

You Have to Pay Your Debts

The only way that you can get out of debt without paying is if you file Chapter 7, and you do not have any assets. This is extremely rare. It will typically only happen if the creditor has broken the law.

Contact the Ursulova Law Offices

Contact an experienced Brooklyn bankruptcy attorney for a consultation today. They will help you understand everything that you need to know about filing for bankruptcy. A knowledgeable attorney will make this process so much easier.