When a debtor files for personal bankruptcy, it only addresses pre-bankruptcy debts. Some types of post-petition filing debt may be added later.<\/p>\n
There are two routes to declare personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation plan that sells your assets to pay creditors and Chapter 13 is a re-payment plan, with money paid to the trustee on a biweekly basis. Those funds are then paid to creditors. Chapter 7 and Chapter 13 cover all debts prior to filing. However, only some types of debt may be filed later.<\/p>\n
If you have hired a bankruptcy lawyer, which is something you should seriously consider, they will discuss what debts are and are not covered. Unsecured debts must be included. An unsecured debt is not backed up by collateral. An example would be medical or credit card bills. <\/p>\n
On the other hand, a secured debt would be a mortgage on a (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" When a debtor files for personal bankruptcy, it only addresses pre-bankruptcy debts. Some types of post-petition filing debt may be added later. There are two routes to declare personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation…<\/span><\/p>\n