Bankruptcy law governs the rights of creditors and insolvent debtors who cannot pay their debts. In broadest terms, bankruptcy deals with the seizure of the
But the fresh start is the most important consequence, for without bankruptcy, people in modern societies would become economic slaves, where their lives would be impaired because they were obligated to continue paying their creditors, who often charged exorbitant interest rates, making it difficult or impossible for
The Purpose of Bankruptcy Law
Bankruptcy law governs the rights of creditors and insolvent debtors who cannot pay their debts. In broadest terms, bankruptcy deals with the seizure of the debtor's assets and their distribution to the debtor's various creditors.
Through these mechanisms, today's bankruptcy laws are designed primarily to assure continued engagement in productive economic activity, with the ultimate goal of restoring businesses and individuals to a degree of economic health and providing creditors with the best hope of collecting.
Overview
bankruptcy, the status of a debtor who has been declared by judicial process to be unable to pay his debts. Although sometimes used indiscriminately to mean insolvency, the terms have distinct legal significance. Insolvency, as used in most legal systems, indicates the inability to meet debts. Bankruptcy, on the other hand, results from a legal adjudication that the debtor has filed a petition or that creditors have filed a petition against him.
What would happen if there were no bankruptcy laws?
Without such a law, we may reasonably suppose that the level of economic activity would be far less than it is, for few would be willing to risk being personally burdened forever by crushing debt
Bankruptcy gives the honest debtor a fresh start and resolves disputes among creditors
Why did Congress enact a Bankruptcy-Reform Bill?
Instead of following the Commission's prodebtor recommendations, Congress immediately proposed a bankruptcy-reform bill that tightened the bankruptcy laws by weeding out fraud and abuse in consumer cases and enacting reforms designed to reduce the cost and delay of small business bankruptcies
Divorce in the United States is a legal process in which a judge or other authority dissolves the marriage existing between two persons.
Divorce restores the persons to the status of being single and permits them to marry other individuals.
In the United States, marriage and divorce fall under the jurisdiction of state governments, not the federal government.
Divorce in the United States is a legal process in which a judge or other authority dissolves the marriage existing between two persons.
Divorce restores the persons to the status of being single and permits them to marry other individuals.
In the United States, marriage and divorce fall under the jurisdiction of state governments, not the federal government.
