What Happens if You Go Bankrupt? 💳

Morning Trump!

That guy’s filed for bankruptcy not once.

Not twice.

Not thrice.

But six times.

Which begs the question: what happens if you go bankrupt??

Asking for a friend…

So imagine you’ve got this beautiful new credit card.

~The American Express Platinum card~

What’s your credit limit on that thing, Derd?

Derd…

Derd!

What. Is. Your. Credit. Limit?

How. Much. Can. You. Afford. To. Spend?

Oh god.

We’ll leave him be, I guess.

See, credit isn’t free money.

It’s debt: money you owe to somebody at some point.

And..uh..Derd ain’t got the money to pay American Express back:

So Durd has to file for Chapter 7 bankruptcy – a liquidation bankruptcy.

This means anything he owns is going to be sold to payback American Express.

But what about the remaining debt owed after everything he owns is sold off?

Lucky for Durd, the remaining debt is usually discharged.

American Express would be on the hook for the loss 🤷‍♂️

This wasn’t financial advice btw…

Stay Cute,
Henry & Dylan 🌈

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