l recently found out that when l was about 5, my parents had to file for bankruptcy. My parents are now divorced. Since l am only 15, l do not fully understand the concept of bankruptcy. What are the consequences of filing for bankruptcy? What are the benefits? And, What are the benefits of not filing for bankruptcy?

Depending on what chapter the bankruptcy was filed under, l am assuming Chapter 7, liquidation, the bankruptcy court appoints a trustee to break up the assets owned by ur parents & distribute it to creditors.

Aside from essential assets such as tools of the trade, home, etc. u lose everything to pay off any delinquencies.

There r almost no benefits to bankruptcy as it ruins ur credit score & makes it almost impossible to receive a loan in the future.

Bankruptcy is only a last resort, if all other choices have been exhausted.

There r much more implications to bankruptcy l probably left out, but that is the general stuff.

if u find yourself owing more than the value of all ur assets u may file bankruptcy to seek protection from creditors. in chapter 7 bankruptcy, all ur assets r seized by the trustee & liquidated & the proceeds distributed to creditors according to a complicated formula. u r immediately relieved of all ur debt just like that but ur credit rating is in the sewer. u will be unable to obtain credit cards, mortgages, or any kind of financial credit for ten years. & even after that the bankruptcy will hand over ur head in all ur financial dealings.

Filing for bankruptcy is announcing that you do not have enough money to pay off your loans, bills, etc. Your debt is erased, but you are stuck with HORRIBLE credit. And bad credit will lead to a very difficult life when you're trying to make big purchases.