What Actually Happens When You File For Bankruptcy

What happens when you can’t pay your debts? Well, once upon a time such as in ancient Greece you might have ended up in debt bondage. Being a debt slave meant that you and sometimes your family would work for the person you owed money to pay off your debt. This is distinct from slavery, since you were freed once your debt was paid. Later on in history, like in Victorian England, the poor were sent to horrific debtors’ prison and would only be released when their debt was paid in full by friends or family. Other debtors’ prisons functioned similar to workhouses and a debtor worked off not only their debt, but their room and board to be freed.

Currently, many countries now practice some form of bankruptcy which reigns in debt and allows debtors to get a fresh start financially. That’s not to say that questionable debt practices no longer exist; in some parts of the world, such as South Asia and Sub-Saharan Africa debt bondage is still practiced. The United Nation estimates that 8 million people are trapped in bonded labor. Thankfully, there are many groups working to improve lives of and free people from what the UN considers a ‘modern day slavery practice’.

However, today we’re discussing the basics of how personal bankruptcy functions in the United States. There are actually 6 different possible types of bankruptcy in the US. They are each named for the portion of the Bankruptcy Code they are found under: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13 and Chapter 15. Each Chapter addresses a different type of bankruptcy, for example Chapter 9 applies to the bankruptcy of municipalities such as towns or cities.

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[KillaCamRon]

Well that's ironic, you need money to file for bankruptcy.

[jimmydurham]

I didn't make bad decisions with money. I was poor and decided not to beat myself up anymore. If you reading this just know it's not bad. Got a credit card a year later, still debt free

[PoppaShark]

Filing for bankruptcy was the worst and best thing that ever happened to me. I paid $2000 for an attorney, to get almost $40k of debt erased. I now have a fresh start and my finances are looking up.

[ElusivEnigma]

YouTube taught me more about life than my

[TheRealGuywithoutaMustache]

I’m too poor to file for bankruptcy

Oof

[tonysolar]

No bankruptcy court will remove a Federal Student Loan from your record. That's one loan you CANNOT escape.

[chefboyrdeeznutz]

Coming from a struggling 21 year old I’d like to say thank you for this video

[wcij]

This the only way I like learning tbh🤣

[nickgehr]

"What actually happens when you file for bankruptcy?"

Me, an intellectual: *You're bankrupt*

[johnnysalami]

So you’re telling me I can’t just say “I declare bankruptcy”?

[EverythingScience]

"I DECLARE BANKRUPTCY"


-Michael Scott

[melaniewoods-cglrecruiting]

This is such a big issue for the job seekers we are trying to help find jobs. They get laid off and really struggle to pay their bills. Thanks for posting this.

[TheBennik]

I declared bankruptcy over 10 years ago. Guess what. My credit score is now at 790. Just do a fresh start. It's not going to hurt you just going to have to wait a couple of years

[thrace_bot]

"What Actually Happens When You File For Bankruptcy"

*S T O N K S*

[philipscalf]

This is a great video! I would love to see a follow up on how to view, understand, and dispute credit reports.

[LetsTakeWalk]

Banks were in ancient times literal banks where money was displayed on. If said bankers had too much debt, soldiers (or enforcers of those owed money) literally ruptured (rupta) the bank. Bank+rupta.

[jaquelyndixson]

DSP at debtor education course: Dood it was the trolls that ruined my youtube career.

[JustADioWhosAHeroForFun]

The 20's decade: *Returns*
The Great Depression: _"Now this looks like a job for me"_

[christopherduffy]

I filed chapter 7 bankruptcy. I didn't have any assets for them to collect so basically I was discharged of most of my debts except my student loan. I got a fresh start.

[PandasticVoyage]

That's hilarious. A debt collector called me WHILE I WAS WATCHING THIS.