Bankruptcy
Introduction
Sometimes, despite the best intentions, plans, and actions, circumstances beyond a person’s control prevent timely payment of every debt. Once that first domino falls, late charges, penalties, and interest are added to the mix, which can quickly push unassisted recovery completely out of reach. There are many ways to address this condition, but perhaps the most responsible is to file a petition for relief under the Bankruptcy Code.
In the past, a person who did not pay his debts was subjected to harassment by creditors, seizure of assets including the bare necessities, and even imprisonment. Under those conditions, a person had little chance to recover from insolvency and often became a permanent burden on society.
The dangers of withholding any form of debt relief have been recognized and addressed for millennia. For instance, in the Judeo-Christian bible, the Israelites were commanded to forgive outstanding debts every seventh year during the year of
Jubilee. (See Deuteronomy 15:1.) Our founding fathers also understood the importance of balancing the creditors' needs for repayment with the needs of debtors to rebuild their financial lives. Where a system for debt relief is provided, debtors have an opportunity to resume being contributing members of society, which benefits everyone. Therefore, within the very first article of the Constitution, the framers authorized Congress to enact “uniform laws on the subject of bankruptcy throughout the United States.” Acting on this authority, Congress has enacted many versions of bankruptcy laws, leading to the current Title 11 of the United States Code, known as the “Bankruptcy Code.”
Perhaps the most important feature of the Bankruptcy Code is Congress’s promise of a “fresh start” for debtors, enabling them to recover from insolvency and resume contributing to society. Another supremely crucial highlight of the Bankruptcy Code is that it provides a means for debtors to protect assets from creditors who would otherwise (and previously did) threaten to seize everything leaving debtors nothing, not even the clothes on their backs.
For the majority of people in need of bankruptcy relief, they will find the most appropriate form of protection under either Chapter 7 or Chapter 13 of the Bankruptcy Code. The Chapter one chooses depends primarily upon a person’s financial circumstances, which must be evaluated carefully before making the decision, and upon how well the route to debt relief in each Chapter meets the person’s needs and preferences. Therefore, it is important to seek advice and/or assistance from a knowledgeable and experienced professional.
Contact Feder Legal, to set up a free consultation, or just follow the links below for more information about Chapter 7 and Chapter 13 Bankruptcy.
A Chapter 7 bankruptcy attorney or a Chapter 13 bankruptcy attorney can help you obtain your financial "FRESH START."
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
