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