What does it mean when someone declares bankruptcy?
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Declaring bankruptcy is asking the court for protection against your creditors. In a Chapter 7, which is a full discharge, the court goes through your debts and disposes of them, ending all collection activities like collections and law suits or other legal actions against you. At the same time it gives you bad credit as it shows that you didn’t manage your debt wisely and it will effect your ability to borrow for at least 7-10 years.
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