What kinds of people appear to be bankruptcy candidates to the creditors?
• 1. People who have shown an inability to pay their debts as evidenced by their failure to make payments for several months on their credit cards and other obligations. In other words, those who already meet the definition of bad credit. 2. People who do not have assets to protect such as equity in homes and cars. 3. People whose current or future income would not allow them to reorganize their finances either through a Chapter 13 or a plan outside of bankruptcy. • How do the creditors find out about this information • When you applied for credit, in most cases, you authorized the creditor to inspect your credit report when necessary. As part of the collection process in determining proper resolution option for your debt most creditors will run a credit report. The creditor obviously knows of your own debt payment history with them. The credit report will allow them to see how you are treating all of your other creditors. For example if you have ten credit card accounts and are curren
