Why Is It Legal To Wipe Out Our Debts?

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Why Is It Legal To Wipe Out Our Debts?

More so than in any other time in our country`s history, our economy is based on consumer debt. In fact, in this age of multibillion dollar corporate bailouts, easy credit and relentless bombarding of seductive messages cajoling us to charge, consume, buy it is not surprising that so many people are drowning in debt.

For many of us, this debt is insurmountable and is causing family problems and feelings of hopelessness and even suicide. With credit card interest as high, or higher, than 20%, many feel like modern day indentured servants. Many times, the debt is occasioned by unforeseen events such as loss of a job or medical bills, but more often it is simply poor planning. Nevertheless, in instituting our bankruptcy laws, Congress recognized that responsible, wellintentioned people could from time to time run into financial problems. By allowing you to recover from your debt burden you will be able to start afresh, look to the future and become a more productive member of society. This is good for you and for good for society as a whole.

Other Divorce and Bankruptcy FAQs

Q: What Is Bankruptcy?
A: Bankruptcy is a legal method of eliminating debt and providing a means for debtoppressed people to obtain a fresh start. In many cases, bankruptcy means the … More
Q: Does My Divorce Decree Protect Me If My Ex-Spouse Has Filed For Bankruptcy And She Has Listed Me As A Co-Signer On A Schedule D?
A: If you are contractually bound with your exspouse on a debt, the creditor can require the entire payment of that debt from your share of the community property … More
Q: What Effect Does Bankruptcy Have On Child Support?
A: Filing for bankruptcy protection does not allow your ex to discharge past due child support obligations. Any back payments owed for child support cannot be included as … More
Q: Who Can File Chapter 7 Bankruptcy?
A: You must reside or have a domicile, a place of business, or property in the United States or a municipality. You must not have been granted a Chapter 7 discharge … More
Q: Will I Have To Give Up Any Of My Property To My Creditors?
A: The vast majority of filers get all or most of their debts discharged (wipedout) without giving up any of their own property. This is because federal as well … More
Q: Are Some Of My Debts Not Dischargeable?
A: Some kinds of debts are not dischargeable, which means that you will remain obligated to repay them even after you complete your personal bankruptcy. Examples of … More
Q: What Is A Chapter 13 Bankruptcy?
A: Under a chapter 13 bankruptcy, a debtor proposes a 35 year repayment plan to the creditors offering to pay off all or part of the debts from the debtors` future … More
Q: When Is A Chapter 13 A Better Alternative Than A Chapter 7?
A: There are several situations where a chapter 13 is preferable to a chapter 7. A chapter 13 bankruptcy is normally for people who have too much income to file a Chapter … More
Q: How Quickly Will My Creditors Get Notice Of My Bankruptcy?
A: Within a couple of weeks of the filing of your petition, the bankruptcy court clerk mails your creditors notice of the filing and the imposition of the automatic stay. … More
Q: Do I Have To Pay My Bills During The Bankruptcy Proceeding?
A: For the most part, the answer is no. For specific property (usually secured) such as your car loan or your houses mortgage that you plan on keeping you should probably … More