Even though most people don't consider themselves at a financial risk for bankruptcy, the sad statistics are that today more and more people are heading that direction. In fact, the various forms of bankruptcy such as chapter 7, chapter 13, and even chapter 11 are becoming a more popular financial out for people and businesses each and every day. The United States Congress originally put the U.S. bankruptcy laws into place in order to provide a more consistent approach for people considering bankruptcy no matter which state that they may have lived. The philosophy behind the bankruptcy laws is to offer people who are struggling with no hope a vehicle to stop continuing to due financial harm to themselves. Within the bankruptcy chapters there are four sections or chapters that lay out the various rules, regulations, and qualifications of each type of chapter or statutes. You are probably familiar with the term Chapter 13 bankruptcy or Chapter 7 bankruptcy. These numbers simply refer to the section of the bankruptcy code that addresses the particular circumstance. With these various chapters of bankruptcy, are explanations of how the various laws are set up to deal with the filing procedures and how the debt is relieved or negotiated down. There are also provisions regulating the behavior of the creditors themselves as it pertains to contacting and collection attempts by the creditor. Even though there are Federal bankruptcy statutes that each state must follow, each state can still pass its own laws concerning the execution of the bankruptcy proceedings. This as long as these local state laws still fit within the framework of the Federal. In other words, states have the power to establish law concerning bankruptcy but not complete autonomy in doing so. Keep in mind however, that even thought the states can't change or amend the basic intent of the core bankruptcy laws, they do have the latitude to interpret how the filings take place and how the laws should be applied. Just like most any statute, the bankruptcy codes are dynamic and subject to change. This is why it is imperative that an individual seeks the counsel of a professional bankruptcy attorney. Any change to the base bankruptcy laws of the U.S. will be originated from Congress itself. An example of such came with the filing requirements of a Chapter 7 bankruptcy. This particular changed effected the primary rules for the filing in that it added additional burden of proof on the person filing to have met the specific criteria and as such would have the right to file for bankruptcy. Because of the influx of people entering the bankruptcy system, this type of change to the core bankruptcy statutes was put in place. Now, across all states, if someone is seeking bankruptcy protection under the law; they are required to complete a court appointed financial and bankruptcy counseling session. This was done to help protect the system and creditors from those who just wanted not to pay off their debts.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
