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Overview of Bankruptcy
Until recent times, many countries treated an insolvent debtor pretty harshly. From 1603 to 1625,  while King James I ruled in England, a debtor who was unable to
satisfactorily explain his insolvency was subjected to ridicule in the public pillory.
During at least one period in Ancient Rome, creditors were entitled to enslave
the debtor as well as his family.
As trade and commerce developed, steps were taken to ease
these severe treatments.
In 1800 the U.S Congress adopted the first national
bankruptcy law. It has been amended throughout the years and today's bankruptcy law as we know it is based on the Bankruptcy Act of 1978. Its intention is to give individuals or businesses a fresh start when necessary. Although bankruptcy law has been modified to
some degree since 1978, it essentially remains the same.
Filing for bankruptcy does relieve a person from the obligation
of paying many debts but there are also nondischargeable debts. This is indebtedness which the person is still responsible for even after filing bankruptcy. In recent years
many people have mistakenly turned to bankruptcy as a "quick fix" for their financial woes. However, some have discovered that many difficulties can still lie ahead.
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Is Bankruptcy right for you?
Before filing for bankruptcy you should educate yourself as much as possible. Find out what's dischargeable and what's  not and if bankruptcy will absolve enough of
your liabilities. You should also be aware that a bankruptcy filing could stay on your credit record for ten years.
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Types of Bankruptcies
There are different types of bankruptcies. They are categorized as reorganization or liquidation.
Chapter 7 is a liquidation bankruptcy. It cancels or
discharges certain debts by selling off particular types of property for the creditor's benefit. Most debtors, however, are able to keep property they need to get on with their lives.
Chapter 13 is a reorganization bankruptcy where some
or all of your debts are paid over time by using your income.
Chapter 11 bankruptcy assists financially struggling
businesses to reorganize. Individuals who file a Chapter 11 bankruptcy usually have debts in excess of the Chapter 13 limits or have substantial non-exempt assets such as property.
 If you do choose to file for bankruptcy it is
strongly recommended that you obtain a copy of your credit report from the three major bureaus to ensure that you account for all of your creditors when filing.
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Books on Bankruptcy
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Bankruptcy Services
We're sorry, we have no recommended links at this time.
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