What is Collection? What Happens During Bankruptcy
A collection occurs when an individual or business owes money to others, often due to errors in financial records or disputes over debts. In bankruptcy, the court oversees and liquidates these assets to pay off creditors.
- Types of collections: medical bills, taxes, credit cards, loans, and more
- What happens during bankruptcy: automatic stay, trustee appointment, and asset distribution
Do I Have to Pay Back Debt After Bankruptcy?
Whether you have to pay back debt after bankruptcy depends on the type of discharge you receive. A Chapter 7 discharge eliminates most debts, while a Chapter 13 can provide an income-driven repayment plan.
- Cheap credit: eligible for Chapter 7 only
- Income-driven repayment plans: available in Chapter 13
- Unsecured debts: may still be required to pay back even if discharged
Learn More About Collections And Bankruptcy from Optimistic Mommy
Source: https://optimisticmommy.com/collections-and-bankruptcy-do-you-have-to-pay-back-debt-after-bankruptcy/ for the most up-to-date information on bankruptcy and collections.