• tygerprints@kbin.social
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    6 months ago

    Most individuals still have to work out a debt repayment plan. I know some credit cards and loans still have to be repayed even in bankruptcy. Chapter 11 bankruptcy is only available if you’re a corporation or a kajillionaire.

      • FarFarAway@startrek.website
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        6 months ago

        Which part is untrue? Didn’t they change the rules of bankruptcy like a decade ago or something?

        It used to be that you could get all your loans discharged and in essence just end up with a really bad credit score. I thought they changed it so people still had to pay their debts off even if they declared bankruptcy.

        Unsure if it applied to corporations though.

    • WetBeardHairs@lemmy.ml
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      6 months ago

      Bankruptcy debt settlement are usually for a fraction of the stated amount. I’ve heard of families who have discharged over 100k of cc debt and only had to pay about 10k. Usually you will lose bigger assets like vehicles, but keep your home.