Understanding Bankruptcy

Understanding Bankruptcy

Understanding Bankruptcy

Understanding Bankruptcy

A bankruptcy action will usually provide only a fraction of the total debt owed to creditors, but creditors are required to accept the liquidation proceeds as total settlement of their debt. Again, in Ron's case, he and Sue committed themselves to repaying everyone who agreed not to join the bankruptcy action. They felt that those creditors who elected to take the bankruptcy proceeds did so voluntarily and thus settled the debt. To be as fair as possible to the creditors who joined the bankruptcy, Ron and Sue retained no salable assets, even though bankruptcy action allows the debtor to keep a small amount of the home equity (if there is a home), one automobile, and a limited amount of cash. Unlike many others who file bankruptcy for their convenience, Ron placed all assets held in Sue's name into the asset pool as well. They withheld nothing from the creditors.

Need Cash Quick Cash? Cash-In-24 Hours.com!

Bankruptcy is never an action to be taken lightly. The financial consequences and the damage to a reputation are long-lasting for anyone, but especially for a Christian. A creditor has a right to expect to recover the money he has loaned in good faith, and the Bible is clear in its admonition to pay one's vows (promises). I believe that Ron and Sue fulfilled this scriptural principle by going to each of the creditors and explaining why they decided to file for bankruptcy. They believed that the disgruntled investors would force them to sell off all their assets and that the unsecured creditors had a right to a share, if they so elected. However, when Ron and Sue approached the creditors, they also explained their total financial situation and indicated that the sale of all their assets would yield only a small fraction of the total debt. They then asked each creditor not to join the bankruptcy action on the promise (in writing) that they would repay all debts in total at a future date, if the Lord chose to provide the funds.

Need Cash Quick Cash? Cash-In-24 Hours.com!

POST COMMENT

Living With Bankruptcy Bankruptcy- Inability Of Bank To Pay Its Creditors Mission Settlement Agency For Compassionate Advice On Debt Settlement And Bankruptcy How Can You Make Sure Your Missouri Bankruptcy Lawyer Meets Your Expectations? Credit Card Debt Bankruptcy - Legitimate Debt Relief Options To Avoid Bankruptcy Bankruptcy Lawyer Can Help Which Bankruptcy Chapter Is Right For You? Bankruptcy Attorney Knows The Ins And Outs Recovering From Bankruptcy 5 Important Points To Help You Get the Right Bankruptcy Attorney Incurring Debt after Bankruptcy Recovering From The Burdens Of Bankruptcy Credit Card Debt and Bankruptcy - Why Debt Settlements Are Better Than Filing Bankruptcy