Hi, I am probably going to be filing for bankruptcy due to some old apartment bills that I can’t pay for and I have a lawsuit against me because of it and I have no money to my name at the moment due to being sick for quite sometime so, I’ll have to file for bankruptcy, what happens in regards to that? I’ve been reading a bit and wanted to know what happens if you don’t have any assets to sell, because I really don’t have anything at all.
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It can really change from place to place, country to country or even state to state.
In the fairly recent past we used to put people in prison when they could not pay their debits. This came to be seen as barbaric and the government devised a process where a person can get out of debt that they cannot pay, but also not be able to just walk away from debt easly.
As a general rule, bankruptcies is a legal process (as in, a process within the legal system) where you formally state that you cannot repay your debts. You then normally go through a formal process where they determine what assets you may have (things they can take and sell) and what debts you have (things that you cannot repay). You then normally need to pay some nominal amount based on your income. Sometimes certain assets can be protected, or excluded from a bankruptcy but not always.
After the process is finished it will be incredibly hard to borrow money, BUT you won’t have to go to debtors prison so that’s a big benefit.
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