Bankruptcy is a legal proceeding in which a person who can not pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
We live in a society where the filing of bankruptcy is generally looked down upon. This is not surprising given the major biases that the lending industry have developed against people who are not able to pay all of their debts. The bankruptcy process should never be abused but should be there for those it is designed to protect — individuals who have become overextended (often through no fault of their own due to illness, disability or unemployment) and need a fresh start. For those of you who are considering filing bankruptcy it is interesting to note that the process of bankruptcy is deeply engrained in our society and is mentioned in both the Bible (Deuteronomy Chapter 15:1-3) as well as the U.S. Constitution (Article I, Section 8).
The Bankruptcy Reform Act of 2005 made significant changes and imposed restrictions on the type of bankruptcy (Chapter 7 vs. Chapter 13 for most consumers) that consumers are permitted to file. For many individuals filing for bankruptcy protection can provide a significant benefit and can give them the fresh start that the bankruptcy law is designed to provide. For others, bankruptcy may not be a viable option.
By clicking on the following links you can read some very valuable information provided by the National Consumer Law Center regarding consumer bankruptcy. The decision to file bankruptcy should not be made in haste. The best course of action is to obtain as much information as possible about bankruptcy and then speak with an attorney about your specific situation.
- Answers to Common Bankruptcy Questions
- Your Legal Rights During and After Bankruptcy: Making the Most of Your Bankruptcy Discharge
- Using Credit Wisely After Bankruptcy
To schedule and initial 30 minute no-cost consultation with Attorney Boerger either call or email Attorney Boerger.
The Law office of George H. Boerger is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.