Daily Question is excerpted from the JustAnswer archives and features information provided from an expert on JustAnswer.
Q: What exactly is bankruptcy and will any of the money I have in my checking account to live be taken or frozen?
(Photo: Flickr/FriedDough)
A: Bankruptcy is a process where you file a court case in bankruptcy court, list all your assets and debts and ask the court to discharge all your debts. If you qualify, the court will grant your request and your debt will literally go away.
Once debt is discharged in bankruptcy, a creditor loses the right to ever collect on that debt again. You can probably set up a free consultation with a local bankruptcy attorney, who can review your assets and debts and let you know whether you qualify and the process to complete.
One easy way to find all your creditors is to run your credit reports. You can do that online. Your credit report will list each creditor, along with your current outstanding balance and contact information for the creditor, including a phone number.
Even in a bankruptcy, you are entitled to keep a certain amount of your money and assets, so your accounts would not be frozen.
– Answer from David L., a lawyer and expert on JustAnswer.
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