What happens if you have significant debt after declaring bankruptcy in the last 7 years?
Tired Momma asked:
A friend has found herslef in a lot of debt and just went bankrupt two years ago. What happens when she can no longer pay her bills? Could she go to jail?
A friend has found herslef in a lot of debt and just went bankrupt two years ago. What happens when she can no longer pay her bills? Could she go to jail?
Thank you!
Vernon
Tags: Declaring Bankruptcy, Lot
March 30th, 2009 at 3:39 pm
Bonnie
Not jail unless she has deliberately defrauded someone. But if she has any assets now or in the future, they could be taken to satisfy the debt.
April 1st, 2009 at 7:23 pm
Sam
She would have to consolidate her debt. She could call the creditors herself and try to work something out. If she gets really far behind, the creditors could sue her and take her to court (I believe it does take a few months before that).
If she owns a home, she could try to get a home equity to payoff the debt or sell her house to payoff the debt. Either way, if it gets to the point where she is being taken to court, they could come after her assets. She can’t go to jail, just to court.
She should really talk to a lawyer to find out her options because every case is different.
April 1st, 2009 at 11:03 pm
Betty
She will be sued and her wages garnished probably. She won’t go to jail unless she commits fraud there isn’t a law against being stupid.
April 4th, 2009 at 5:33 pm
Lewis
Garnishment of her wages will be started as soon as she finishes all the court hearings she has to go to.
April 6th, 2009 at 12:08 am
Beatrice
I don’t fully understand your question. If she filed bankruptcy all of her debts are written off. If you are saying that she went back and run up bills again, when she is in series trouble.
I would suggest that she contact the debt management non profit group in her area.