If a debtor goes through bankruptcy, will the creditor get any money back?

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Bankruptcy is a judicial process by which a debtor’s assets are divided among his or her creditors to pay off as much of the debtor’s debt as possible. To achieve these ends, the debtor’s assets will be converted to money in order to be fairly divided among creditors. In many cases the division among creditors will be as equal as possible, although there are circumstances that might cause one creditor to be paid a larger portion than others. However, it is unlikely that any one creditor will receive 100% of what he or she is owed as bankruptcy is often taken as a last resort, only when the debtor knows he or she cannot make payments to everyone which means that there will probably not be enough money to pay back any debt in its entirety.

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