Eli5 how does filing for bankruptcy work? Do you just stop having debt and get to start over?
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This is something that varies massively from one country to another, and some countries have multiple different forms of bankrupty that apply to different kinds of entities (individuals, corporations, partnerships, etc.).
> Do you just stop having debt and get to start over?
It’s usually much more complicated than that. You may have various restrictions placed on you, your finances will probably be examined to make sure you aren’t hiding money somewhere, some of the remaining assets you do have may be sold off to pay your creditors (there are usually limits to this: they probably won’t demand that you take your clothes off), and some of your debts might be restructured instead of being written off. And obviously you will probably find it much harder to borrow money in the future.
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