A bankruptcy – though never pleasant – to many was a fresh start. Permitting those who got in over their heads, who may have managed finances unwisely, or who encountered sudden fiscal upsets to have a majority of their old debt eradicated and thus start anew on the road to good credit and the responsible management of funds. Yet after October of 2005 and blaming the courts, bankruptcy bound debtors found discharges heavily burdensome and instead of rejoicing at the newfound freedom and ability to once again start over, old debts were said to haunt those in dire financial straits.
On 12.28.09, In Bankruptcy, By admin
On 11.26.09, In Bankruptcy, By admin
In the United States, federal bankruptcy was designed by congress as a relief measure to persons or organizations who are financially distressed. In other words, in the face of insolvency, an individual or organization can find relief against their debt obligations in federal bankruptcy.
Chapter 7 of the federal bankruptcy code provides for the appointment of a trustee for the liquidation of assets of the debtor for orderly distribution to the creditors. When a debtor’s assets are being liquidated, federal bankruptcy code requires that this should be subject to certain exemptions.