What will happen to my creditors if I file for bankruptcy?

If you live in Hawaii and file for bankruptcy, your creditors will be affected depending on the type of bankruptcy you file. If you file for Chapter 7 bankruptcy, you will be required to liquidate some of your assets in order to pay off your debt. Your creditors will receive the proceeds from the liquidated assets. You will be relieved of the remainder of the debt. Alternatively, if you file for Chapter 13 bankruptcy, you will be required to enter into a repayment plan with your creditors. Under this plan, you will make payments to your creditors over the course of three to five years, and at the end of the repayment period, any remaining debt will be discharged. No matter which type of bankruptcy you file for, when you file for bankruptcy your creditors will be notified and will no longer be able to take any action to collect the debt from you. However, your creditors may still attempt to collect the debt from any cosigners. Furthermore, the bankruptcy will stay on your credit report for up to ten years, which may affect your future ability to access credit.

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What will happen to my creditors if I file for bankruptcy?

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