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The U.S. Constitution is amazing in
its brevity. Considering this, it was with substantial
foresight that the framers of the constitution granted
congress the power to establish "uniform Laws on the
subject of Bankruptcies throughout the United States."
In general the framers were the
social, political, and financial elite of the the early
United States. Even so, they understood the necessity of
providing debt relief to those unable to repay their
debts due to circumstances beyond their control.
What this means to you as you consider
filing bankruptcy is that the process will occur in
federal court. It will be governed primarily by federal
bankruptcy law with some variations from state to state. |
In regard to personal bankruptcies,
federal law establishes two forms (chapters) of
bankruptcy.
Chapter 7 provides complete relief
from most debts. Upon completion of the process debtors
are discharged from their obligations. This means the
debt is gone. Exceptions exist and should be discussed
with your lawyer.
Chapter 13 provides a review of your
assets, income, and debt and establishes partial relief
from your debt. The portion remaining and the time frame
for repayment will be based on your circumstances. |
