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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There are different kinds of bankruptcy. Broadly speaking though the idea of bankruptcy is that when someone cannot pay all their bills in full and on time they fall back on the court to take control of the situation and mandate a resolution. This doesn’t mean that a person or organization has no money, and it doesn’t mean that they don’t need to pay back their debts. It just means that often some debtors will need to accept delayed repayment or some debts won’t be paid back in full.
For an individual bankruptcy might turn out to be something like garnishing of wages for a period of time, while they are allowed to keep things like their car and house (if they own one). The reasoning behind this is that someone needs certain things to continue to earn and live, and stripping someone to the point they are destitute isn’t good for society overall. How your particular legal issues will turn out is not something this subreddit can address though.
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