Facts Everyone Should Know About Bankruptcy

Bankruptcy is quite common in America these days. Despite of good economic growth during last few years, the bankruptcy filing rate has increased many folds. Many big corporate have gone bankrupt in last few years. This in conjunction with the steep rise of personal bankruptcies has spurred legislative efforts to reform the bankruptcy code. Reasons are, an increasingly expensive and dysfunctional Chapter 11 reorganization system, and the macroeconomic competitive pressures of globalization.

 

Bankruptcy in past

Initially the bankruptcy laws were designed to support creditors in collecting the debtor’s assets, not to protect the debtor or discharge (forgive) his debts.

 

The primary purpose of the Bankruptcy Clause was to protect creditors, not debtors, and in fact, debtor’s prisons persisted in many states well into the eighteenth century.

 

During the nineteenth century, the federal government implemented its bankruptcy powers only periodically and in response to major economic downturns. The first bankruptcy law continued from 1800 to 1803, the second from 1841 to 1843, and the third from 1867 to 1878. During these periods without a federal bankruptcy law, debtor-creditor relations were governed exclusively by the states. The first permanent federal bankruptcy law was legislated in 1898 and continued in effect, with revisions, until it was replaced with a comprehensive new law in 1978, the vital structure of which is still in place today.

 

Bankruptcy law interferes only when a debtor is broke.

 

Issues relating to basic debtor-creditor relations, such as contracts, real estate mortgages, secured transactions, and collection of judgments are handled by non-bankruptcy and state law

 

How a best bankruptcy lawyer can assist you in filing for bankruptcy.

 

A Virginia Beach bankruptcy lawyer or Norfolk bankruptcy lawyer is a legal professional whose focus is to assist his/ her clients through court proceedings to reduce or eliminate debt or to proceed forward with bankruptcy. An experienced Chesapeake bankruptcy lawyer can guide you through the process of making appropriate decisions, paperwork and process that demonstrates a bankruptcy filing.

 

A best bankruptcy lawyer can advise you on the bankruptcy process and whether it is best for you. They work to help you take a critical look at your debts and assets and conclude if bankruptcy is the best available option for you or if there is a smarter method to improve your situations from a different viewpoint.

 

If bankruptcy is the only possible solution for you, they can help you compare the chapter 7 and chapter 13 options. This is the most important decision which requires you and your lawyer to find out the size of your debt, assets, and your capability to pay off your debts or a fraction of your debts, among many other factors.

 

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