The primary purpose of the federal bankruptcy laws that were passed by Congress is to create the opportunity for those individuals who have burdensome debts to begin anew. The Supreme Court stated the intent of the bankruptcy law in a 1934 decision:

“[I]t gives to the honest but unfortunate debtor . . . a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt (Local Loan Co. v. Hunt, 292 U.S. 234, 244, 1934).”

This goal can be fulfilled via bankruptcy discharge. It will protect you by releasing you from personal liability for specific debts, and prohibits creditors from acting against you to collect those debts. There are six basic types of bankruptcy cases under the Bankruptcy Code. The cases are traditionally given the names of the chapters that describe them: Chapter 7, Chapter 13, Chapter 11, Chapter 12, Chapter 9, and Chapter 15. I will explain the meaning of these Chapters in a future blog. This information will make filing for bankruptcy less intimidating to you, and will facilitate the process.

But, as I pointed out in the previous blog, a bankruptcy case depends on complex legal issues, such as automatic stay and exemptions. So the sooner you choose your bankruptcy attorney the better off you will be. If I can be of any help please contact me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.