Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
When the individual files the Bankruptcy, you will be sent a notice of the filing, and instructions on how to file a "Proof of Claim". These are sent to all the creditors (a "creditor" is any person or company a "debtor" owes money to) this individual has. If there is enough equity in her home and property, these will be taken and sold to pay the creditors proportionately, according to how much money is owed to each creditor.
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