I’ve been watching documentaries on bailiffs recently and a lot of people file for bankruptcy due to having no assets etc. How does it work for those in debt, and what happens to their debts?
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So there are two forms of bankruptcy people typically apply for: Chapter 7 and Chapter 13. Chapter 7 deals with those who have no assets.
Chapter 7:
So there are two cases for Chapter 7: asset and no-asset.
In no-asset cases, the debt can be removed. The creditors will not be able to collect on the debt. Some debts cannot be removed. It is up to the court to decide that.
In asset cases, the court will liquidate your assets to pay the debts.
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