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or declare bankruptcy, which is a legal way to bring creditors to the negotiating table when you don't have the personal liquidity to meet your debt obligations
by clairity 8y ago
or declare bankruptcy, which is a legal way to bring creditors to the negotiating table when you don't have the personal liquidity to meet your debt obligations.
in bankruptcy, you can buy back your own debt for pennies on the dollar (among other options), intermediated by (and with the approval of) a judge (or mediator). i dimly recollect that in certain cases your primary residence can be retained in exchange for other remedies.
- toyg 8y agoBankruptcy carries a lot of side-effects though, like losing access to any credit for a period of years (laws differ from country to country, but that’s one of the most common outcomes).
- nostrademons 8y agoDoesn't having debt get sold off to collections have many of those same problems?
- ThrustVectoring 8y agoNot any credit, just credit on the best terms. Credit card companies are perfectly willing to lend relatively small amounts of money on their more profitable cards to people with recent bankruptcies. Yes, they have poor money management skills or other issues. But they cannot declare bankruptcy again and have had their debt obligations reduced to a reasonable level, which dramatically improves their credit risk.