Who pays off debt if a bankruptcy is filed

March 1st, 2009 by Questions

I am currently thinking of claiming bankruptcy and I am wondering who pays off your current debts?

The reason why I ask, is I owe my parents 10, 000…and I understand I would need to claim this under the bankruptcy. Will she ever get paid back?

Posted from: Alberta


One Response to “Who pays off debt if a bankruptcy is filed”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you file for bankruptcy your creditors are not paid off. The are legally required to walk away from the debt, this would include your parents. Now in some cases the creditors may get a small recovery from a bankruptcy, but typically this is a nominal amount.

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