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nenebaby90

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what does filing for bankruptcy actually mean and what does it do

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Filing for bankruptcy is a court action where you basically claim there is no way to pay your debts and you're asking the court to declare that (after selling whatever assets you MAY have and distributing them to the creditors) the creditors have to forget about trying to collect on the debts.  Some people actually run up horrendous debts buying bunches of "toys" then declare bankruptcy as a cop-out to paying legitimate debts.

What does it do?  First, it seriously hurts your credit rating for the next ten years, after which you have to start all over to begin to build your credit.  Second, it ends up costing everyone more money when they purchase items because creditors would like to regain some of  the money they lost and they charge more for the items they sell over time.

If you are seriously considering bankruptcy, think it over very thoroughly and consult with a bankruptcy attorney who will usually give advice on how to avoid filing bankruptcy, yet get your debts paid off.  It is good to listen carefully to that advice since the attorney already knows the trouble you would be having in the future.

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