Who pays for a persons debts when they file for bankruptcy?
When a person files for Chapter 7 no one pays the debts. When someone files a chapter 7, the creditors suffer a loss. Most of the debts discharged in a Chapter 7 are credit card debts. Credit card companies are some of the most profitable companies in the world. These credit card companies are still making billions even though millions of their debts are discharged in personal bankruptcy in the United States.
